Rupee touching new record level of 69 and Nifty bracing for sub 5200 level in the immediate future.More and more analysts are expecting the market to correct further and touch recent lows and preferring the traders to hold on their short positions.The depreciating rupee and high crude oil prices due to tension in Syria will be major negative sectors to hurt the sentiment in near term.
US Fed policy on 17 th September on QE tapering will be an important event to watch and monitor clubbed with the higher chances for fairly weak policy.
After the policy event the market may decide its new course and there are worst signs to expect 4,800 on the Nifty; influenced greatly by sell-off in leading emerging market currencies and fresh jitters in the Middle East led by Syria.
The fears of Fed tapering and tensions in Middle East could put Rupee under more severe pressure, with risk of forcing the market sentiments to worst level; in the absence of any substantial positive signals from Delhi.
As the status of India's economic fundamentals remaining on shaky ground; with rising fuel prices, sky rocketing Government subsidy bill; unmanageable CAD level , fiscal deficit crossing the red line by big margin; consumer's inflation going much high to unnerve the political leadership already in the election mode;all these factors combined will be serious factors to culminate markets to fall in a heap in this year itself.