A morning walk down Dalal Street | Expect sharp correction if Nifty slips below 10,500

Indian markets cracked on Thursday tracking weak trend seen in other Asian markets. The S&P BSE Sensex plunged 572 points while Nifty50 lost 181 points to end at 10,601.

The total market capitalisation of BSE listed fell by Rs 2.28 lakh crore. 

Traders also remained cautious ahead of five states elections exit poll due on Friday evening and result on December 11 as well as OPEC meeting.

Both Sensex and Nifty broke below crucial support levels which is a sign of worry for investors in the near-term. 

If I look at the institutional activity, net buying of FPI was Rs 72 crore while on the other hand, DII net sell figure stood at Rs 389 crore on Thursday.

Global cues will be important for charting market direction in the near term along with state election outcome due next week. A defeat of BJP would signal uncertainty about the outcome of the general elections which are around the corner and markets hate uncertainty. 

Also, the rupee depreciated by 44 paise to close at 70.90 against the US dollar on December 6 amid a strengthening greenback and a sharp decline in equity markets.