Pre Open Thoughts: Stuck In Flux!!!

Pre Open Thoughts: Stuck In Flux!!!

Ø Indian markets currently are stuck between rock and a hard surface Locally we have got event risk, globally things are looking twisted, risk off trade seems to be starting, global volatility has shot up and crude certainly is trading above the comfort zone

Ø The near-term trend in the Indian market may remain volatile and range bound between 5200-5500 considering the fact that important events like the RBI policy meet, Union Budget and Advance Tax numbers are scheduled in the coming week

Ø With an eye on 2014 general elections, the Congress may not want to take too many risks. The Budget session, especially the Union Budget, will be interesting to watch.

Ø Adding to the list of domestic worries, the rupee fell to a seven-week low versus the US dollar, as global investors resumed their purchases of safer assets amid renewed concerns about global economic growth. The Indian currency has now declined for five consecutive sessions.

Ø Today opening today is likely to be positive. The optimism comes in as the much-awaited debt swap in Greece has finally happened, with participation surpassing expectations. Asian markets are mostly positive, tracking overnight gains in the US and European markets.

Ø Globally Most central banks have maintained a status quo on monetary policy.

Ø According to systems Nifty took support of 5200 and bounced back as expected we urge caution at current levels as key events lined up in the coming week. We suggest investors to remain on the sidelines and avoid taking risky positions.