FIIs may cut EM allocations to adjust taper: Devangshu Datta

Markets have succumed to selling pressure in trades today post both the central banks, RBI and FOMC announced their policies. The rupee has slipped along with other Asian currencies after the US Fed decided to begin the tapering.

The US Fed said it would reduce its monthly purchase of asset by $10 billion, reducing it down to $75 billion. The taper will be equally split between mortgage-backed securities and US teasury bonds.

Check out the trading strategies for Nifty, Bank Nifty and IT shares with Devangshu Datta, Technical Analyst

SmartInvestor: Markets have succumbed to selling pressure in trades today post both the central banks, RBI and FOMC announced their policies. How do you see trend panning out from here on?

Devangshu Datta: More downside expected. The FIIs will probably cut Emerging Market allocations to adjust for the taper. The rupee could also slide.

Devangshu Datta: Technically, if the Nifty breaks support at 6150, it could slide till 6100 and then 6050 etc., there's support at every 50 pts distance. On the upside, there is now resistance at 6200.

SmartInvestor: Financial stocks are leading the downslide today. What is your take on the Bank Nifty?

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