Morning bell !!!!.....The NSE Nifty has fallen below the 4,900 mark, Rupee depriciates to 51.27

Indian Markets

The key Indian stock indices have extended this week's losses in early morning trade on the back of persistent weakness across risky asset classes amid lingering concerns about the ever worsening credit crisis in the eurozone and its impact on the global economy. The NSE Nifty has fallen below the 4,900 mark. The BSE Sensex is down nearly 1%.

Indian markets witnessed a sharp downward spiral on Thursday after the Nifty broke the supports of 4990. While the BSE Sensex finally closed 314.16pts or 1.87% lower at 16,461.71, the Nifty lost 95.7pts or 1.9% to close at 4,934.75.

US Markets

U.S. stocks fell sharply on Thursday as jumpy investors dumped risky assets on fears of more debt trouble in the eurozone. The Dow Jones industrial average was down 135 points, or 1.3%, to end at 11,770; the S&P 500 fell 21 points, or 1.7%, to 1,216; the Nasdaq composite sank 51 points, or 1.9%, to 2,588. The selling gained momentum after the S&P 500 fell below 1,225, a key technical level that had been the recent moving average.

All the Indian ADRs ended on a weak note with Infosys & Wipro falling by 1.8% & 3.3% respectively. Dr. Reddy?s & Tata Motors ended lower by 4% & 6.4% respectively, while ICICI & HDFC Bank fell by 4.1% & 5.5% respectively. Tata Communications ended lower by 4.1%.

Asian Markets

Today, the Asian indices are trading on a weak note with Shanghai & Hang Seng trading down by 0.8% & 1.7% respectively. Nikkei & Taiwan are trading lower by 1.3% each. Strait Times & Kospi are trading lower by 1% & 1.7% respectively.

Currencies & Commodities

Among the Metal prices, Aluminum & Copper ended lower by 0.6% & 1.2% respectively, while Zinc & Nickel rose 0.2% & 0.5% respectively. Indian rupee depreciates to 51.27 compare to USD.

Outlook for Today

Today, we expect the markets to open on a weak note. However, during the latter half of the session, it could find support at lower levels and could recover some of its losses. In terms of strategy, we recommend a go-slow approach on fresh longs till we see signs of sustainable strength. Immediate support for Nifty is at 4885, while the crucial resistance is at 5000. Among the sectoral indices, Capital Goods, IT & Banks look weak and could underperform.

Sources- HDFCSEC