Alroy Lobo of Kotak AMC believes global events are likely to determine the market direction ahead, with issues in the Eurozone remaining the key overhang.
The BSE Sensex opened lower on Thursday, tracking the sharp selling across Asian bourses. The Nifty index came close to falling below the 5,100 mark, and the rupee was sharply lower against the dollar.
Overnight, the Fed said it was extending Operation Twist to keep long-term interest rates low. But markets were disappointed by the move.
According to Lobo, Nifty may test support levels post the first quarter results, which he feels may be disappointing. On the positive side, he says, the rupee depreciation is largely done and he sees scope for a pullback.
The rupee fell on Thursday, coming close to a record low against the dollar, as risk assets fell on disappointment about the scope of US Federal Reserve's bond purchases and after HSBC factory data from China showed a contraction.
Traders are on watch for any