It was a very volatile session yesterday and our markets were down by almost a percentage.FMCG shares ended in green for the day.Organized retail stocks fell as the dead-lock over FDI continues.Reliance Industries was down by around 2 percent and it had shut 4 wells in the KG-D6 and reported a drop in output.Expect more selling pressure in the stock for the day(Kindly note, it had issued an arbitration notice to the Oil Min-read my yesterday's article for the same)..In the past 10 trading sessions FIIs sold almost 7500 crores in Indian equities.And Rupee closed above 52 for the day.
Q3 GDP numbers will be announced today.Higher inflation and RBI's rate hikes(RBI hiked rates in all the recent policy meetings) would have taken a toll and I expect the numbers to be lesser than the previous quarter's numbers(7.7%).
After rallying for 2 days in a row, Nikkei and Hang Seng are trading negative by three-fourth of a percentage at 0730 hrs IST.
SGX is trading at 4790 at 0730 hrs IST.
I expect the markets to open negative following the Asian Indices.In the domestic front,keep an eye on Reliance industries and the Q3 GDP numbers.These two factors will set the tone for the day.
In the International front, S&P downgrades 37 large Banks/Fin.Institutions after the market hours in the US. Goldman Sachs, Bank of America, Citigroup, Morgan Stanley, BNY Mellon are the major ones in the US. Barclays, HSBC Holdings, Lloyds Banking Group and The Royal Bank of Scotland are the major ones in the UK.
Alex sir's views:- Support for the day for Nifty is at 4787 ,4750 and 4739.Move below 4739 may trigger further sell-off. Resistance for the day is at 4865 and 4924.
