Expect gap down opening: India Infoline

According to India Infoline Daily Market Watch, We are in for a gap down opening. With over 11% inflation expected to be reported, weakness is expected throughout the day and a 3-5% fall in major indices will not be surprising.

India Infoline Daily Market Watch:

Short covering helped extend gains for a second straight trading session yesterday. However, upmoves were limited to select index heavyweights like RIL, Infosys, Cipla and HDFC.

Global markets have fallen sharply as crude hovered around USD 139-140 levels. This is likely to trigger a major sell-off in Indian equities today. We have been advising not to get sucked into any rally since recent ones have been mainly on account of short covering, poor breadth and no fresh buying was seen. We are in for a gap down opening. With over 11% inflation expected to be reported, weakness is expected throughout the day and a 3-5% fall in major indices will not be surprising.

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