Domestic equities are expected to see further downfall on Tuesday, amid adverse global market condition. The weakening rupee is adding more pressure on Indian stocks, said analysts. The Rupee hit a low of 77.52 on Monday against the US dollar before settling around 77.4650.

"We expect Nifty to dip below 16,000 in a couple of days," said a Chennai-based market veteran. SGX NIfty at 16,155 indicates that another 150 points down, as Nifty futures closed 16,298.85 on Monday. Foreign portfolio investors, too, aggravated their selling in the last few days. According to him, selling by FPIs is unlikely to end anytime soon.

Nasdaq slumps 4.3%

Following the US stocks, markets across Asia too tumbled in early deal on Tuesday. Equities across Asia slipped 1.5 per cent lower.

Overnight, the S&P 500 index of U.S. stocks tumbled Monday to the lowest levels in more than a year and is now almost 17 per cent below the record high set on January 3. The Dow Jones Industrial Average fell about 654 points, nearly 2 per cent, the S&P 500 crashed 3.2 per cent, and the Nasdaq Composite plunged about 4.3 per cent or 521.41 points.

"A couple of domestic and global factors have led to about 10 per cent correction in Nifty over last one month. The weakness is likely to persist till the concerns over inflation, rising interest rate, and prolonged Russia-Ukraine war subsides," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Technically weak

Technically till Nifty holds below 16,400 zones, bounces could be sold for the downside move towards 16000 zones. This week, focus will be on the inflation number that will be released on the domestic front as well as from the US, he added.

Ruchit Jain, Lead Research, 5paisa.com, said: "Our market continues its short term corrective phase and there are no signs of reversal yet...The momentum readings on lower time frame charts are in the oversold zone and hence, we could see either a consolidation or a pullback to relieve the oversold set ups."

"In case of any such up move, initial resistance would be seen around the ’20 EMA on the hourly chart’ which is placed around 16460 followed by ’20 DEMA’ at 16580. Until we see a change in structure, traders should look for selling opportunities at higher levels and avoid aggressive positions. On the flipside, 16100-16000 would be support below which 15800 would be the immediate levels to expect," it added.

A slew of IPOs

Amidst all, primary market remained active with India's largest public issue LIC receiving overwhelming response.

"While the primary market struggling with volatility, we are witnessing lot of action in the primary market. While India’s largest IPO of LIC successfully closed on Monday, three more offerings will hit the market this week including Delhivery, Prudent Corporate Advisory Services and Venus Pipes and Tubes," said Khemka.

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