Posted By : Kishore B.S
Hi Friends !!!
Looks like the trouble for the Indian Markets are still likely to linger further since if it was the Global news, especially the news emanating from Euro or the Lack of any Policy Reforms from the GOVT that led to the fall on the Indices from 5300 levels to the 4780 mark, today it was the turn of the Rupee sliding to the New Lows of 55++ levels against the Dollar that scared the Investors and traders away from the markets.
The Markets were almost flat in the positive zone after Gap Opening today till the Opening of the European markets after which the sudden Decline of the Rupee to 55 levels led to sell off in the Markets which crashed by over 50 points in just few minutes to recover slightly and tread further down by another 50 points during the rest of the trading session.
The fall in the Nifty resembled like a Pack of Cards which was fast and lacked any support with the trend continuing till the end of the trading session where some buying was witnessed which could be either value buying or intraday short covering.
Most of the Analysts were pointing towards a bounce to 5000+ levels during the start of the session after the indices were seen tredding near the 4940 mark resistance level which was expected to be broken off to reach the 5000 level. However the Indices did the reversal by breaking the support levels of 4906 and crashing all the way down to the 4950 levels.
With this breakdown due to the fears of the depreciating rupee and its impact on the Financial scenario of the Economy has emerged again on the backdrop of the drifting GDP, IIP numbers which is causing concerns that we could drift to the 4600 levels or further down to 4400 levels if the Rupee doesnt find any support and reverses soon.
Tomorrow’s Euro meet could also set forth some direction for the markets alongwith the closing of the Euro markets and steps taken by the FM or RBI if any which needs to be watched.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)