Nifty Below 200 EMa: Inflation and geo Political Head winds take toll

Nifty is now trading below 200 EMA . Rising food inflation, Geo Political Tensions in Egypt resulted in negative sentiments. We see some more downside  till 5300-5400 levels with bouts of volatility in coming few days. Thereafter market participants will look for the union budget and how the Government plan to go ahead with reforms. Banking stock have corrected a lot and offer opportunity to buy at every decline.Though development in Egpyt may see rise in Crude oil prices and fear of third oil shock.