Last week, markets were seen opening on a negative note and remained weak in the early part of the week on the back of a weak rupee and global conditions. The rupee each day falling to its record low, made foreign investors remain in sell off mode. It made the Nifty close down around 1 per cent on a weekly basis. The sectoral losers for last week were Healthcare and the Auto sector, which closed down around 3.7 per cent and 3.5 per cent respectively. The gainer was the Metal sector, which closed up around 13 per cent. Nifty has resistance at 5535 and 5585. Movements above these levels can lend further support. On the other hand, if Nifty moves down below 5315 then we can expect a further downtrend in the market and it may test 5200 or even lower levels at 4950.

Steps
The RBI recently came out with more steps to save long-term bond yields from further fall, and helping banks from incurring financial losses due to declining bond prices. The central bank also allowed the banks to hold Statutory Liquidity Ratio (SLR) bonds in Held to Maturity (HTM) category at 24.5 per cent of their respective total deposits or Net Demand and Time Liabilities (NDTL) which was earlier mandated to be brought down to 23 per cent. Also, the banks are allowed to transfer SLR bonds to HTM category from Available For Sale (AFS) or Held For Trading (HFT) categories up to the limit of 24.5 per cent as one time measure. In addition, the banks can spread over the net depreciation on account of Market To Market (MTM) valuation of securities, held under AFS/HFT categories over the remaining period of the current financial year in equal installments.