Market likely to open with a negative bias - 18th February, 2009

Indian markets are likely to open negative, taking cues from the weak global markets. Asian markets were lower in the morning, as US stocks took a beating on deepening recession fears and renewed concerns over the future of European banks. Yesterday, we saw Indian markets slipped as expected following global cues. We saw markets slipping consistently throughout the day and even broke 9000 on intraday basis for the Sensex. Heavyweights like Reliance, NTPC again contributed heavily to the downfall. The indices managed to close a tag above the lows of the day but near very crucial support zone for the short term range in which the markets are trading from past many days. We need to be cautious and we do not advice any delivery based positions for the coming few trading sessions. The rupee could weaken to 50 against the dollar on Wednesday for the first time since early December, pressured by outflow concerns from the stock market following weak regional indices. Crude oil prices settle below $35/bbl as grim economic indicators battered markets and raised concerns about slumping demand. The Sensex has supports at 8930 and 8860 and resistances at 9125 and 9220. The Nifty has supports at 2750 and 2725 and resistances at 2810 and 2850.