Pre Open Thoughts: Eye on the Three “I’s”!!

Pre Open Thoughts: Eye on the Three “I’s”!!

Ø Sentiment is the poetry of the imagination. Markets have a mind of their own and tend to move on sentiment, which, for the moment is positive. So just ride the wave. Key events on the radar of the market players today ;It could well be billed as a big day for the markets as all the Eyes will be on the Three “I’s” Infosys results, IIP & Inflation for December - another crucial piece of data - is due for January 16. It stood at 9.11% in November. A sustained moderation in the headline WPI and core inflation could give the RBI much-needed elbow room to reverse its series of rate increases. What the RBI will do and say on January 24 is anybody's guess right now.

Ø Back home, earnings from IT companies will be in focus. In the Meantime one big positive is that FIIs are still pumping money into Indian stocks. FIIs are actually net buyers. This morning, we are looking at another flat opening, on back of mixed close in ‘western’ markets. There are news that Europe may finally be getting a handle over its credit crisis. Asian markets too are trading mixed.

Ø Plenty of developments are going around the world as well. Globally, the European Central Bank (ECB) and the Bank of England (BOE) would hold policy meetings today plus, a whole host of important economic statistics are due from across the globe.

Ø According to systems resistance on the Nifty is likely in the 4900-4920 range while support might come around 4700. A move past 4900 could extend the current up-trend.

Ø Results Today: Infosys Ltd & HDFC.