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The domestic markets are expected to open negative following weak global cues. Having bounced back sharply on Tuesday, the markets may see another bout of selling, at least in the early part of Wednesday. According to analysts, the falling rupee, weak global markets and F&O settlement on Thursday will keep the market volatile.
Markets are trading in sync with their global peers and have seen selective participation so far, said Ajit Mishra, VP - Research, Religare Broking
US stocks plunge
SGX Nifty at 15,700 (8 am) indicates a gap-down opening of about 150 points for Nifty, as the Nifty futures closed at 15,847 on Tuesday. Equities across the Asa-Pacific region, too, are down over one per cent, following a weak closing in US stocks. All the three major US indices - Dow, S&P 500 and Nasdaq - have tumbled between 1.5 per cent and 3 per cent.
"We expect market volatility to continue, with changing global cues. The monthly F&O expiry this week could also add to the volatility. Concerns over economic growth, monetary tightening and a depreciating rupee could keep the upside limited in the near term as the Nifty is approaching a strong resistance around the 16,000 mark," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
Rupee nears 79-mark
The domestic currency nosedived to a fresh low of 78.84 as against the previous day's close of 78.34. "FII outflows and global risk aversion kept investors on their toes as selling from the emerging markets intensified," said IFA Global.
"Oil importers were also seen at the dollar buying side on the back of month-end flows net-off. The elevated crude price further dented sentiments for the Indian rupee," it added.
According to Rupak De, Senior Technical Analyst, LKP Securities, "On the lower end, 15650-15700 remains the support for the near term. The momentum indicator RSI is in a bullish crossover and rising. The trend looks positive as long as it sustains above 15650. On the higher end, 15900-16000 may continue to act as a resistance"
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