New Delhi: Amid incessant flow of negative cues over the past few days including political turmoil in Greece and the rupee's touching historic lows, stock markets which fell for four weeks in a row may continue the downslide in near-term.
Analysts are not much enthused about the broader market's slight gains which it recorded on Friday helped by SBI's stellar quarterly performance, as they are worried about the continued pressure on the rupee which hit its all-time low last week.
"SBI result has done (what it could) on Friday. Now all depends on rupee. If the government spring back to action on rupee measures then Nifty may test 5,050 level," CNI Research CMD Kishore Ostwal said.
Last week saw BSE's 30-share index, Sensex, shed 140 points or 0.86 per cent to close at 16,152.75. The rupee had on Friday closed at 54.42 against the US dollar. The domestic currency at one point slumped to 54.91, hitting all-time low in the third straight session.
"Markets have become highly volatile both on account of global developments and domestic events. Political turmoil in Greece has made the sentiments jittery around the globe.
"Further downside in the markets cannot be ruled out. The upside resistance for Nifty exist at 4,950," Rakesh Goyal VP Bonanza Portfolio said.
According to Inventure Growth & Securities Head Research Milan Bavishi: "Rupee is witnessing slide against dollar on back of rising imports and slow FII inflows due to high inflation, rising fiscal deficit and policy stalemate."
Experts feel that the rupee is likely to continue downslide and could be in the range of Rs 55-57 in the medium term against the US dollar mainly on account of higher foreign fund outflows.
"In the short-run the rupee weakness appears overdone and hence a pullback is expected to be between 53 and 53.5 with 55 as the cap. However, in the medium term there is a risk of rupee weakness extending to 57 levels," Kotak Mahindra Treasury Head Mohan Shenoy said.
This week investors will also look for quarterly results from blue-chip companies like ITC, Tata Power and BHEL.     

Besides, market experts are also keeping an eye on crude oil prices which have declined from their lows.


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