Pre Open Thoughts: Keep the Faith!

Pre Open Thoughts: Keep the Faith!

Ø Faith is the bird that feels the light when the dawn is still dark. Will the faith for Tuesday’s rally continue…? like the five previous weeks when the frontline indices had galloped on Tuesdays.

Ø The start today is likely to be positive, though most global markets not budging much amid thin trading volumes. The undercurrent is hit by worries over rising oil prices. The trade and current account deficits too are widening. All this calls for continued caution.

Ø The RBI holds its next policy meeting on March 15, a day before the Union Budget. The release of Q3 GDP data is scheduled tomorrow

Ø There is also considerable uncertainty over the outcome of state polls and its impact on the political equation at the Centre. The result of the UP election is particularly crucial. A favorable verdict here for the Congress could embolden it to revive pending reforms. On the flip side, an adverse mandate in UP might force it to maintain status quo on economic measures.

Ø The sell-off in local markets in the last few sessions appeared even more discouraging comparing to the global trends. FII flows seem to be still positive. That could mean sideways consolidation for a few days.

Ø According to systems we had advised caution and we feel that the glumness of February series F&O contract expiry session likely to get spilled over.

Ø For Nifty 5600 remains to be major resistance level now and on down side 5200 should act as a major support levels after we broke a crucial support of 5400 in yesterday’s session.

Ø The FIIs were net buyers of Rs 3.29bn in the cash segment on Monday while the domestic institutional investors (DIIs) were net sellers at Rs 6.99bn, as per the provisional figures released by the NSE.