Bearish sentiments may continue to outweigh equity markets this week 

The fall on Friday was more severe with Nifty ending 0.62% lower at 19,265.8 and Sensex was down by 0.56% at 64,886.5 as FPIs net sold on Friday to the tune of R4,600 crore.
Indian equity markets may continue to trade lower this week amid sell-off from foreign portfolio investors.
Indian equity markets may continue to trade lower this week amid sell-off from foreign portfolio investors.

NEW DELHI:  The Indian equity markets may continue to trade lower this week amid sell-off from foreign portfolio investors. Last week both Sensex and Nifty ended in red with the former shedding 156 points, or 0.26%, and Nifty losing 97 points, or 0.50% in the five trading sessions last week.

The fall on Friday, the last trading session, was more severe with Nifty ending 0.62% lower at 19,265.8 and Sensex was down by 0.56% at 64,886.5 as FPIs net sold on Friday to the tune of R4,600 crore. Domestic investors were the net buyers (with R1,414 crore), but that was not enough to support the market. Expectations that the US Federal Bank would go for more rate hikes continue to drive bearish sentiments.

According to Shrikant Chouhan, head of research (Retail), Kotak Securities, markets could remain volatile in the coming week due to macroeconomic uncertainty and rising US bond yields. “This has been prompting foreign institutional investors to flee emerging market equities, including India and park funds in safe haven US securities,” he says.

According to Devarsh Vakil - Deputy Head Retail Research, HDFC Securities, next support for the Nifty is seen in the zone of 19050-19100, while on the upside, 19375 would act as a resistance now. “Short term trend of the Nifty is likely to remain bearish till it closed above 19375,” he says.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, predicts a ‘listless trading session in Monday’s trade in the backdrop of benchmark Nifty ending on an extremely negative note’.

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