Pre Open Thoughts: Reversal of fortunes!
Ø A likely impossibility is always preferable to an unconvincing possibility. Possibilities of sustaining higher levels remain unconvincing.
Ø The undertone is cautious as Investors continue to remain edgy amid doubts as to whether the Union Budget proposals will revive GDP growth and cut fiscal deficit even as inflation remains stubbornly higher.
Ø There are also concerns about the timing and the quantum of the repo rate reduction by the RBI in the coming fiscal year given the suppressed price pressures in fuel and fertilizers amid stiff opposition to unpopular measures like price hikes in fuel & fertilizers..
Ø Elevated crude oil prices are also a cause for concern. It would be interesting to see what approach the RBI adopts on interest rates at its policy meeting on April 17.
Ø In short, the backdrop is not bright as we kick off , the start today is likely to be subdued due to weak Asian markets and overnight fall in European indices. Investors are also worried about the ability of eurozone economies as uncertainty still prevails over the intensity of the situation in the eurozone and its repercussions for the global economy.
Ø According to systems Nifty might face resistance at 5350 levels on break of which nifty might rally upto 5500-5600. On the down side support remains to be at 5200-5160 on break of which we can see a slide upto 5000-4980 levels.
Ø Overall indices may oscillate at current levels till the next month RBI policy review.
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