Top 8 things to look out in the market today

The Nifty is likely to fall in early deals on Wednesday as weak cues from Asian markets, particularly Chinese stocks, hit sentiment on Dalal Street. Wall Street closed with modest gains as Crude Oil prices stabilized near 3-month lows.

Nifty Futures, traded on the Singapore Exchange, point to a gap down opening of about 1 percent.

China's Shanghai Index plunged 5 percent and Hong Kong's Hang Seng Index dropped 4.8 percent. Chinese retail investors are exiting markets owing to fears that GDP growth may get crimped ahead. Heavy losses are also seen on Japan's Nikkei and South Korea's KOSPI.

The Nifty, meanwhile, is likely to face resistance at 8,560 levels and a strong support is seen in the 8,420-8,370 band. The Index closed at 8,510 points the previous day. A drop in Chinese stocks may prompt FIIs to move some money to Indian equities, however, the event is unlikely to occur immediately. Its best to wait it out. Investors and traders should wait for a while for taking a long position in Indian markets.

Weak Commodity prices globally are likely to comfort Indian stocks in the medium term: Copper is near 6-year lows, Gold trades at 4-month lows and Crude oil quotes at 3-month lows. However, a sustained fall in commodity prices points to an impending global slowdown. Such an event will be negative for Indian equities, despite lower input costs.

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(Image credits: openmarkets)