Indian Markets Today: More Losses Ahead

12 Aug, 2015, (8:50 AM IST)

SGX Nifty is trading more than -70 points down as rupee weakens against USD, now trading at 64.64. (check USD/INR chart here ) As you all know by now, the Chinese central bank has thrown world markets into a turmoil by weakening its currency and waging a currency war against the U.S.

Emerging markets like India are expected to be affected badly by this changed situation as not only their equity markets will suffer losses on falling rupee, but all hopes of more rate cuts from the RBI will disappear with the changing winds.

SGX Nifty is dropping with a steady speed so it looks like NSE Nifty will open near or below 8,400 level.

Nifty has a major technical support near 8,371, its 50-Day Moving Average.  Traders should wait for some stability in markets after a big gap down opening today and then, take advantage of this global negative trend by selling at every bounce.

Markets can become very volatile as various factors like commodity, forex and bond markets have changed their course and might exert opposing stress on equities.

For intraday trading, Nifty has support levels near 8,417, 8371 and 8,302.

Below 8,300, the negative trend can pick up more speed.

These same levels will also act as resistance if Nifty tries to recover.

Going by the chaos and stampede and global markets, it looks difficult that Nifty (or Bank Nifty, for that matter) will find any support now, but still, markets can always change direction. So keep an eye on these levels and trade with the trend.

Good luck, enjoy the session.

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2 Responses to Indian Markets Today: More Losses Ahead

  1. I am new in stock market, your blog is more helpful for me…
    Keep sharing latest news

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