Sensex slips 517 points, goes below the 60,000-mark

• SGX Nifty, an early indicator of the market, was down 0.32%.
• Hawkish comments from the US Fed over inflation and economic concerns have spooked investors.
• Sensex opened 517 points lower at 59,144 and Nifty50 started the week 164 points lower at 17,593.

Sensex slipped by 517 points in the early morning trade, falling below the 60,000 mark it hit last week. Nifty50 too started the week on a negative note as it fell 164 points to 17,593.

Even auto companies which saw heavy buying in the last one week, too were a part of the top losers on the indices today.
The concerns of economic slowdown came back to haunt the markets late last week after the US Fed hinted at aggressive rate hikes. On Friday, the benchmark indices, Sensex and Nifty closed lower at 59,646 and 17,758 points respectively.

“Technically, the Nifty witnessed profit booking near 18,000 level, while on daily charts, the index has formed a long bearish candle and also broke the important support level of 17,850 which is broadly negative. In addition, it has also formed Hammer candlestick formation indicating further weakness in the near future.

Below 17900, the correction formation is likely to continue and could retest the level of 17600-17500. On the flip side, 17900 –17950 would act as an immediate hurdle for the bulls. Fresh uptrend is possible only if the index clears the resistance of 17950, which could then take it further to 18050-18150 levels,” Amol Athawale, deputy VP- technical research, Kotak Securities on last week’s market close.

Oil prices have been falling and are now trading at $89 per barrel on fears of slowdown that could dent fuel demand.

Markets had rallied in the last 30 days due to positive cues from global markets and FIIs coming back to emerging markets like India. However, after the US Fed meeting minutes released last week, recession fears re-merged.

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