NEW DELHI: The S&P BSE Sensex pared some of its losses after plunging over 300 points in trade post Reserve Bank of India’s surprise move to cut rates by 50 basis points on Tuesday.The 50-share Nifty index was also trading around its crucial psychological level of 7,800.
“On the upside, immediate resistance is at 7930 i.e. 61.8% Fibonacci retracement level. A trade above the level of 7930 may take the Index to levels of 8030-8090 being trendline resistances,” she said.

Shankar is of the view that on the downside immediate support is placed at 7800 i.e. price cluster. A trade below 7800 could drag it down to levels of 7760-7720. Nifty Future is expected to be volatile in trade owing to RBI policy action.The S&P BSE Midcap and BSE Smallcap indices fell 0.6 per cent each. Among the sectoral indices the BSE Metals index shed about 2 per cent with Vedanta and Hindalco contributing most to the losses on the index.

The rupee recovered 20 paise from the day’s low to trade at 66.17 post Reserve Bank of India’s move to cut rates. The rupee declined by 33 paise to 66.37 against the US dollar early on Tuesday.The domestic currency had closed 11 paise higher at 66.04 against the greenback in the previous session on dollar selling by banks and exporters.Most Asian markets traded sharply lower as investors joined a global selloff amid deepening worries about the world economy. Japan’s Nikkei shed 3 per cent in trade while Hong Kong’s Hang Seng index slipped over 700 points. China’s Shanghai Composite also traded weak, down by 1.5 per cent. South Korean and Taiwanese stock market were closed.

Source : http://economictimes.indiatimes.com/markets/stocks/news/sensex-down-300-points-nifty-retest-7700-levels/articleshow/49146851.cms

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