Weakness in Indian markets to continue on Tuesday

Bhavesh Shah, Head Research, Asit C Mehta said that Indian market was expected to open weak on global cues (US markets closed down and Asian markets were also trading down). However, much awaited listing of country`s largest IPO - Reliance Power- spoiled the day. Very muted response to Emar MGF and Wockhardt IPO were indicating a subduded opening for Reliance Power but the stock listed much below market expectation and that dragged the entire ADAG space down.

Reliance Energy, Reliance Communications contributed largely for the fall in the market. Entire power sector was under intense selling pressure on very weak debut from Reliance Power.

He stated that, ``I am expecting weakness to continue going forward. This week is going to be very crucial for the market as India`s industrial production data for the month of December is expected on Tuesday. Retail Sales and Industrial production data will be announced in the US and also Japan would announce its Q4 2007 GDP numbers. These factors are going to be very crucial for the market.

He advises investors to be very selective before committing new investment in the market.

Nitin Kunte, technical advisor, Angel Trade said that market was bearish today. (February 11). Selling pressure was visible since morning trades. No support is being seen by FII`s and domestic institutions.

Markets witnesses very sharp fall today. Sensex closed down 833 points at 16,630 while Nifty at 4,857 was down by 263 points. He added that today indices closed below 200. Moving average added to the negative sentiments of the market.

He expects further weakness to come in the markets and advises investors to sell off their long positions in every rise. Long investors can see these levels as good buying opportunity, he added. One can look at frontline index based stock at every major fall for taking a long position, he added.

According to him, Nifty support is at 4,550 to 4,650 levels. He also states that at 5,000 levels, fresh selling will be seen.