Markets opened the previous week with negative bias amid persistent selling pressure on worries over the global economic crisis after global ratings firm S&P downgraded the US credit worthiness by one notch from AAA to AA+. Investors remained worried over higher interest rates that may dent corporate profit growth. Interest sensitive stocks like auto, housing and reality lost ground on worries over higher interest rates. IT sector suffered the most during the previous week on likely economic slowdown in the US and Europe, the two biggest markets for IT firms. The market failed to recover even on last Friday in spite of higher IIP data, the indices continued its decline for the third consecutive week with the Sensex losing 2.69% or 446 points and the Nifty 2.65% or 138 points and closed the week at 16839 and 5072 respectively. Market participants also seemed worried on concerns that the apex bank may continue its tight monetary policy to tame the rising inflation thereby slowing the pace of economy. Further, markets will be keenly watching the inflation data for July which will be released this week. The readers are advised to trade with caution and keep a watch on global trend.
The counter this week may remain in the range of 4990-5165, break above it may move up to 5215/5248 or else break below it may slide to 4949/4917. For today’s trading the counter to gain strength needs to trade and remain above 5104.75 whereby it may move up to 5122/5153. Strong support for the NF exists at 5055.25 which if breached decisively with volumes then it may slip to 5031/5017.
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