Pre Open Thoughts: Stick To Your Conviction…

Pre Open Thoughts: Stick To Your Conviction…

Ø The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty. You must stick to your conviction, but be ready to abandon your assumptions. Mounting evidence of an economic slowdown have resulted in a short supply of confidence and conviction.

Ø Fortunately, the start is set to be good amid a sea of red across world markets. Asian markets are showing some resilience. Given the huge event risk and weak global backdrop, US stocks closed negative as investors turned cautious and also ahead of talks among EU leaders as lack of concrete progress in Greek debt talks as they still struggle to clinch a deal with its private creditors on a proposed debt swap.

Ø It will be prudent to be cautious and let the dust settle down a bit. Results will continue to be examined Outcome of the state elections and the run up to the Union Budget are going to be crucial.

Ø The short-term uptrend is in danger is likely to fizzle out only if Nifty violated key support of 5050 below which selling pressure could aggravate further. One big positive is that FIIs pumped in ~Rs90bn during the month.

Ø We advocate caution at current levels with immediate support likely around 5000. As our systems will turn into a short below 5000 levels.

Results Today: Aban Offshore, BASF India, Central Bank of India, Century Textiles, Crompton Greaves, Dabur India, Delta Corp., FT, Gateway Distriparks, HCL Infosystems, ICICI Bank, IDBI Bank, Ipca Labs, Jagran Prakashan, KEC International, Muthoot Finance, NMDC, PNB, PTC India, Shoppers Stop, Siemens, Subex, TIL, Titan and TVS Motor.