Pre Open Thoughts :“BEAR” in Mind!!

Pre Open Thoughts: “BEAR” in Mind!!
Ø One should ‘Bear’ in mind the problems of the past will continue to haunt us for a while before we see definite signs of improvement. The Union Budget will show if the Government is still serious about reforms. Till then, the markets will continue to witness topsy-turvy movements.
Ø Indian equity markets seemed to have lost some steam as the early New Year global rally faded and investors turned cautious ahead of important economic announcements in the coming days. Also, corporate earnings will soon start trickling in and market participants would want to hear from the management about the prospects for the coming fiscal year.
Ø US stocks ended flat European stock indices were in red as well. Most Asian markets are trading mixed this morning with. That’s the world for you this morning. It’s a no-brainer that the opening back home will be subdued yet again.
Ø A big headache for Indian policymakers at the moment is the unrelenting slide in the rupee. On the flip side Crude Oil also has spiked up on back of Iran’s threat to block oil shipments to western powers. With the dollar in great demand and macro-economic fundamentals weak, the pressure is likely to continue on the Indian currency. That may, in turn keep FII inflows depressed. In short, things could worsen before they start looking up again. So, brace for some more volatility and uncertainty.
Ø According to Systems Nifty is likely to trade in a narrow range with support of 4650 and resistance at 4800 on break of either side on can see a trigger for the fresh move.