Pre Open Thoughts: 'Thank God it’s Friday'

Pre Open Thoughts: 'Thank God it’s Friday'

Ø Whenever a situation develops to its extreme, it is bound to turn around and become its opposite. We are in for a positive start as FII inflows continue to be encouraging in the face of multiple macro-economic problems.

Ø On the flip side number of other pressure points like a yawning fiscal deficit and tardy policy action are also yet to be addressed. Hopefully, some of them will be taken up by the Government.

Ø The Union Budget will be a litmus test for the Centre as it gears up for the 2014 general elections. That could mean sideways consolidation for a few days. Avoid impulsive shopping as the near-term outlook remains murky.

Ø Technically, Nifty will face resistance at 5550-5600 zone. Decisive price action may be seen, if Nifty crosses these levels in session on down side 5400 may act as strong support for the market.

Ø We still advise that one should stay on the sidelines for a few days as the key indices may cede more ground. Most traders are watching for the 5400 level on the Nifty in the near term. Maybe just 'Thank God it’s Friday' and take time to relax over the weekend.

Ø The Foreign institutional investors(FII’s) continued to be on the buying side with provisional figures for Thursday stood at Rs 1.04bn in the cash while the Domestic institutional investors (DIIs) were net sellers at Rs 6.4bn, as per the provisional figures released by the NSE.