Outlook for Indian Markets still weak - Alex Mathew

The markets had opened on a positive note tracking global as well as the domestic cues but came down in the morning session itself. But we saw recovery in the early afternoon session which was short lived and the markets came to a close in red off the day's low and high.

In the domestic front, the telecom Major Bharti Airtel slipped near to 9% on the news that the company may offer $10.7 billion for Zain's African assets which may affect Bharti's financials in the short term. Also during the day the inflation number for the month ended January 2010 came in which was at 8.56% as against 7.31% last month and it is expected that the inflation could touch double digits by March which pulled the markets down in the later part of the morning session.

The rise in inflation could be partly attributed to 17.4% jump in food prices. However markets got support at lower levels as the IIP number which came out last Friday showed that the industry output grew 16.8% in December as against previous year. Shares in consumer durable, capital goods, realty, FMCG and banking fell while metal and IT made minor gains.

In the second part of the day, European shares rose with buying happening in banking and commodity stocks while Asian stocks fell as China moved forward with its steps to curb inflation. The US markets will be closed for today being President?s Day. Finally our markets came to a close with Sensex down 0.71% and Nifty down 0.52%.

We saw buying in paper manufacturers like Sesha paper, AP Paper, Orient Paper, TNPL etc and railway stocks like Kalindee Rail, TWL etc moved up today also ahead of the railway budget.

Outlook for the market is still weak and there are chances that it may fall towards 4750 and below it can fall further towards 4697 and 4600 while the resistance is there at 4845 and 4875 levels.

Source : Equity Bulls

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