Pre Open Thoughts: Lack Of Conviction!!

Pre Open Thoughts: Lack Of Conviction!!

Ø We never know what will happen. The market is in constant motion and is a sea of uncertainty. The movement of the market may not make much sense though Wednesday’s smart turnaround is likely to spill over into today’s session. World equities are mostly negative to flat.

Ø The Nifty managed to outperform its global counterparts in last session though market breadth hasn’t been great of late, but stock specific action will prevail. Banks will be in focus. owing to RBI meet next month.

Ø But, don't bet on any meaningful rally from here given the macro-economic headwinds. Mounting evidence of an economic slowdown has resulted in a short supply of confidence and conviction. On the flip side Indian Government too needs to chip in by keeping a tight leash on the so-called ‘wasteful’ spending.

Ø Volatility will prevail ahead of one week to F&O expiry. On the other hand crude is been trading at near high at 124$ mark.

Ø It would be foolish to start buying aggressively at this juncture. Most traders are watching for the break of the range of 5300-5600 levels on the Nifty in the near term. Whether it re-tests the recent lows of 5200 is anybody's guess. But, if it does one may selectively start dabbling in quality stocks