Pre Open Thoughts: Left Out Feeling!!!

Pre Open Thoughts: Left Out Feeling!!!

Ø Everything that is done in the world is done by hope. We hoped to share some brighter backdrop before the open. The rally in the broader market looks too good to be true. Indian benchmarks have skyrocketed around 18 percent in 2012, thanks to hefty buying from foreign funds that pumped in $4.4 billion so far this year. With the liquidity flow continuing relentlessly, indices have no other way but to look up.

Ø The left out feeling is there in some quarters and a few are wary of the sudden rise and may prefer to sell into the strength. This week it will give some opportunities to get in as the global macro factors could cause a temporary cooling.

Ø Any positive opening today would be suffice to extend the rally in Nifty beyond 5700 levels though most Asian markets are in the red. US markets were shut on Monday. European stocks rose on optimism about talks reaching a logical conclusion on bailing out Greece.

Ø On the domestic front, the F&O expiry on Thursday will ensure that the week sees the indices swinging in and out of negative zone. Ride with caution.

Ø Markets till now have surprised with breakout above 5600 levels and closed comfortably above resistance levels of 5550. This up move happened despite initial jitters from global markets.

Ø According to our systems there appears to be some indecisiveness amongst the traders. We suggest being extremely cautious and vigilant.

Rollover Snapshot:

CM 3MA 6MA

Mkt Wide 26.63% 34.91% 34.22%

NIFTY 26.39% 36.38% 30.81%

Ø Nifty and Market Wide rolls remain sluggish on E-3 day; both were below 3M and 6M averages.

Ø On the Sectoral front, all sectors were below 3M and 6M averages barring TEXTILES. Capital Goods and Infrastructure shows higher rolls compare to other sectors; Whereas Chem & Fert, Finance and Real Estate were laggards.

Ø Stock specific Bharatforg and Aloktext shown above average rollovers whereas RUCHISOYA and BRFL were laggards.