Pre Open Thoughts: Conservative Approach!!!

Pre Open Thoughts: Conservative Approach!!!

Ø Everything is connected... no one thing can change by itself. There is nothing much to change the mood from the last two trading sessions. F&O expiry will only add to the volatility. Contrary to the usual norm at the end of a Financial year, FIIs have been modest buyers from last couple of session in Indian equities lately. Focus will be on the domestic issues.

Ø Bear’ in mind the problems of the past will continue to haunt us for a while before we see definite signs of improvement. Buckle up and step up your vigil to dodge short-term uncertainty and volatility. Be ready to invest once the tide begins to turn in favour of risky assets such as India.

Ø Meanwhile through bond market India plans to raise 3.7 trillion rupees ($72.98 billion) through bond sales during April-September, in line with market expectations, but dealers expect yields to rise on back of heavy weekly supplies.

Ø It may take a while for the outlook on Indian markets to change for the better, which calls for a conservative approach initially. The start today is likely to be sedate as market participants will take time to commit themselves. Global cues are muted.

Ø Nifty is likely in the 5200-5400 range while support might come around 5170. A move past 5350 could extend the current up-trend.

Ø BEML will be in focus after the electrifying revelation by Chief of Army Staff General V K Singh that he was offered a bribe of rupees 140 million — apparently to sanction the purchase of 600 Kolos Tatra high-mobility vehicles — has highlighted a crucial question: How has the defence public sector undertaking, As Bharat Earth Movers Limited, been supplying the army with what it considers a largely imported vehicle at an exorbitant price for a quarter of a century.