Pre Open Thoughts: Setback is A Lesson!!!

Pre Open Thoughts: Setback is A Lesson!!!

Ø Every setback is a lesson to be applied in the move towards success. Holi is the Indian festival of color and joy. It is the day when the bright colors of Holi diminish all the discriminations of caste and creed in society but, colour for the day is red and looks like that will be the colour for the market too at least initially. In any case, the market has been looking a wee bit tired lately following the joyful January & February. Global markets also seem to have lost bit of momentum amid rising oil prices and escalating geopolitical tension.

Ø Whether we are going to see a meaningful pullback from current levels or just a sideways consolidation only time will tell. So, hang on tight as the near-term ride could turn a little bumpy.

Ø The RBI holds its policy meeting on March 15, a day before the Union Budget which will be a test for the Centre as it gears up for the 2014 general elections. The Government will be in a tight spot as it doesn't have the fiscal room to announce additional outlays for populist flagship schemes

Ø The back-and-forth between risk aversion and risk tolerance may continue market players take stock of the situation. Stick to a measured, stock specific approach to avoid short-term volatility. But, beware of dodgy small-caps and mid-caps

Ø The start today is likely to be negative once again, with most global markets not budging much amid average trading volumes. US & EU indices also ended in red. Asian markets are flat to negative. Indian markets are expected to be slightly choppy.

Ø The Nifty has been flirting with the resistance of 5300 for the past 3-4 trading sessions. After yesterdays fall a Sell has been triggered on our MTS systems on break of 5295 but we really still advise to be on the sideline give the intense news flow in the following weeks.