Markets to open weak; GST council meet eyed

Indian share markets spooked by global equity markets and fall in energy prices came in for heavy profit taking on Wednesday, November 2. Stock markets were further feeling nervous about the possible outcome of the US Presidential election results post the gap between the two leaders narrowing further. However, markets were successfully able to defend itheir important resistance levels as Nifty closed near the levels of 8500; whereas Sensex came close to 27500 at close on Wednesday.
 
European markets witnessed fall for an eight-straight day on Wednesday, November 2 marked by uncertainty surrounding US election results. Major benchmark indices saw deep cuts anywhere in the range of 1 to 1.85 per cent with Spanish IBEX being the biggest drag.
 
US stocks tanked in trade post FOMC statement to keep the rates unchanged, however signaled a possible re look at the rate hike in its next policy meet in December 2016. Markets were also feeling jittery as election day nears.
 
Asian shares remained weak in trade as they traded near their three-month lows extending further losses; however, both the Australian and Chinese markets were trading slightly in the green territory with gains of close to quarter of a per cent.
 
SGX Nifty is trading with losses of 0.20 per cent to the levels of 8521. We expect markets to open weak and may touch lower levels below 8500. In domestic ques, GST Council meet would be closely watched.