Indian Markets to see more selling pressure - Alex Mathews

The markets had opened on a positive note tracking minor positivity in the global markets and moved in a range till noon. But later in the second part of the day we saw markets witnessing selling pressure which took the markets down into red and closed for the day in red.

Buying interest was seen in metal and realty stocks while IT stocks were in red as rupee gained strength against dollar. In the European space, markets were initially in green with miners gaining as weak dollar boosted gold and other precious metal prices. Also news that Romania and Hungry had cut interest rates to fresh lows supporting growth too helped the markets to remain in green for sometime.

Stocks in the Asian space too moved up as reports showed that US consumer spending remained on the higher side last month while Japan's Industrial Production fell in the previous month. However US index futures were in green but off the highs and finally our markets came to a close with Sensex down 0.68% and Nifty at the same time down 0.76%.

On the sectoral front the major gainers were Realty up 1.42% followed by PSU and power while IT, Technology, Healthcare and Bankex were the losers. Individual gainers were Shiv Textiles, TCP Ltd, Uniply, Advanta, Bag films, Hindustan Copper while Goldtech, Edserv, Steeltubes and Infodrive remained losers.

Nifty weekly RSI is around 73 and the daily RSI is around 58 and so some more selling pressure from the higher level could be seen. Nifty is having major resistance at 5329 and 5365 levels while the support can be seen at 5203 and 5188 levels.

Source : Equity Bulls

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