Pri Market Comentary ...

Today, we expect another gap-down opening.The current situation warrants extreme caution. Any advance (dare we say) is likely to be driven by short-covering as fresh buying is negligible. FIIs continue to be heavy sellers even as local funds are continuing their shopping spree. The market will remain under pressure unless crude oil and local inflation) cools off sharply and FIIs turn net buyers.

Lots of shorts are believed to have been created in July futures and a low rollover in the near-month Nifty futures suggests more pain in the near term. Given that it's a derivative settlement week, expect a lot of volatility. The bias remains negative, in the wake of the worsening global as well as local factors. The heated political environment is also not making life any better for the bulls.