Pre Open Thoughts: Deteriorating dreams!
Ø It doesn't matter if the water is cold or warm if you're going to have to wade through it anyway. Mercury has dipped across the country, especially in North India, but the political heat is all set to escalate. Coming back to markets we are living in a moment of history where change is so speeded up that we begin to see the present only when it is already disappearing. The worries are not disappearing anytime soon .The bulls will try their best to lift the markets this week, however the enthusiasm is likely to fizzle out as profit booking can emerge at around 4800 levels on the Nifty.
Ø US markets once again made a flat closing on Friday on back of worries about the European crisis which is likely to remain on forefront.
Ø Back home, this week will be very important for the markets as IIP (Nov.), inflation (Dec.) and Infosys results are due. Lot more results are scheduled in the coming weeks. And, although FY12 earnings have been discounted, corporate commentary will be examined to gauge the mood at India Inc.
Ø The Union Cabinet has also reportedly deferred a decision on allowing Public Sector Undertakings (PSU) to buy back their shares amid inter-ministerial differences. If the share buyback proposal goes through, the Government can raise money by selling its equity stake in the PSU to the company itself. We're going to need good, strong positive news on earnings to lift all three of the market averages out of their trading ranges,
Ø Systems Remain Short with a stop on nifty at 4880-4900 levels. On break of which we can see trend reversal taking place.
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