Here's what to expect from the markets today

Broader Indian markets are likely to remain under selling pressure even as brave traders and investors take a stab at bottom fishing on Tuesday in a market that hit 10-month lows amid a global sell-off in equities. A mild bounce-back in Index futures gives hope to long only investors as they search cues for a reversal.

The Dow Jones Index ended with losses of 588 points, or 3.6 percent overnight. Early deals saw the index dropping 1,089 points intra-day but a strong bout of buying in heavy weight blue chips saw the Dow recover from intra-day lows. This bounce-back and today's sharp rise in Index futures for Dow, S&P 500 as well as the SGX Nifty is keeping hopes alive that stocks continue to trade in a bull market, albeit a one experiencing a major correction.

The SGX Nifty is pointing to a 125-point gap up start at trade on Tuesday. Stocks in Japan, Hong Kong, Taiwan and Korea are showing strong bounce-backs after more than 4 days of relentless selling.

It remains to be seen if this upward thrust is sold into.

Major commodity indexes have hit their lowest in 16 years as a bear grip tightens around them. Crude Oil futures are now at 6-1/2 year lows. Brent Futures slipped below $45/bbl for the first time since March 2009. Some bit of buying is seen in Gold and Silver futures.

Meanwhile, the Nifty Index crashed 491 points to 7,809 on Monday. Support is pictured in the 7,576-7,476-point band while resistance is seen at 8,430. The Bank Nifty plunged 1,245 points to 16,811 points as traders remained net sellers on the banking sector.

The Cash markets presented a mixed picture. Foreign Institutional Investors remained net sellers for the fifth day. They sold a massive 5,275 crores rupees of local shares, the largest sell figure in at least one month and coming after 2,417 crores that they had sold on Friday. It presents an extremely bearish view for the times ahead. Domestic institutions that provided the much needed support at lower levels: local institutions stepped up their net purchases with a total of 4,098 crores on Monday, just after net purchases of 1,524 crore rupees on Friday.

The derivatives space remained in a bear grip. Traders were net sellers to the tune of 412 crore rupees for Index Futures; Net purchases of 1,214 crore rupees for Stock Futures; Net sales of 1634 crore rupees for Index options and net sales of 169 crore rupees for Stock Options.

Delivery based selling was seen in almost all major stocks.

Image credit: Indiatimes