Poor global markets and lack of confidence ahead of IIP data and earnings season pulled equities to lower. All the sectoral indices were in the red led by IT, realty and metal stocks.
Market is keen awaiting Index of Industrial Production data for the month of November which is expected to rebound in the month of November Industrial growth had contracted by 0.4 per cent in October 2008. According to the poll, consensus IIP numbers will be at 1.6% in November on the back of a lower base effect and the growth rate which began to show signs of recovery in the second half of November.
As for the week, course of action will largely depend on global cues. Nifty now faces a strong hurdle around levels of 3020~3050 range with closing basis support on daily chart now at 2820 levels. Any close below this level may see fresh sell-off, which may probably take indices lower towards 2600 levels. Q3 earning from India Inc., which may be impacted negatively with higher interest rates, input cost, inventory and credit crunch can probably lead to fresh sell-off. Strict stop-losses on all short-term position is advisable to a trader keeping in mind above mentioned levels for Nifty,
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