Oil and rupee to decide market direction

It was another weak day for Indian markets thanks to weak global cues and weakness in rupee which hit a fresh all-time low of Rs 69.09/USD on Thursday. The Nifty5o slipped below its crucial support at 10,600 but the real carnage was seen in the small and midcap space on Thursday. The index finally closed 82 points lower at 10,589. The Nifty50 slipped below its crucial 50-EMA but closed above its 100-EMA placed around 10,571. The Nifty bounced back from its crucial support placed around 10550 .However, experts feel that the correction may not be over yet as long as 10666 remain intact.The index is likely to drift lower towards 10,417 and subsequently towards 10,325 i.e. 61.8% retracement level of its previous rise once it breaks below 10,550. On the way up, 10,632 – 10,674 will be resistance zone in the near-term. Any rise towards the resistance zone shall be considered as selling opportunity, suggest experts.They maintain our bearish outlook on the index for the short term with a reversal placed at 10930.Looking at the institutional activity: FPIs sold Rs951 crore from equity markets while domestic institutional; investors bought Rs442 crore shares in Indian equity market, as per provisional data.

 

 

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