Markets eye global cues

The markets, which closed on a weak note during the week ended, was spooked by negative news on both domestic and global front.

The Sensex and the Nifty ended 131 points and 32 points lower at 33,176 and 10,195 respectively. However, mild buying interest in the broader market saw BSE mid- and small-cap indices close 1.4 per cent and 1.6 per cent higher.

Shades of political instability by 2019 cast shadow on the markets after TDP decided to exit NDA.

Widening current account deficit on the back of a rising trade gap has become a cause of concern. According to the government data, trade deficit expanded to nearly $43 billion in the October-December period from $32 billion in the July-September period. The wider trade deficit was partially on account of higher crude oil prices.

FII selling and portfolio outflows have resulted in rupee becoming the second-worst Asian currency so far this year.

Near term market direction will be dictated by political stability cues in terms of no confidence motion in the Parliament for the ruling party, news flow on monsoon, US Fed meeting, primary market (IPOs), macro economic data, international crude oil prices and global cues.

For the week ahead, chartists predict trading range of 32,600-33,600 and 10,050-10,350 for the benchmark indices. Support for the indices evident at 32,850 & 32,600 and 10,110 & 10,030.

Nifty is precariously poised above the 200DMA of 10,100; breach of this level and multiple closings below this level may pull down Nifty to as low as 9,200-9,300 levels in next few weeks.