Pre Open Thoughts: An Uneasy Calm!!
Ø Concern for someone else was a good remedy for taking the mind off one's own troubles. An uneasy calm seems to be in the air even as markets continue to grapple with multitude of problems. For India the fiscal deficit has crossed the annual estimate, liquidity remains tight, FII inflows are tapering off and global economic scenario remains hazy. To add to the markets’ woes, the ONGC auction last week was a near disaster.
Ø Looks like the worries that hounded investors throughout 2011 are slowly beginning to resurface. The eurozone remains the biggest bugbear.
Ø But, there is a silver lining in the dark clouds in the form of a possible reversal in the interest rate cycle. All in all, this week is a truncated week where we will see continuation of volatility , as there are the big event this week and the week after that.
Ø The start is likely to be indecisive for the Indian markets. US stocks declined on economic reports whereas their counterparts European shares closed in green. Asian markets are quiet and trading on a mixed note.
Ø The single-biggest concern of late has been the swift and sharp depreciation in the rupee. RBI will have unleashed measures to curb excessive speculation in the Forex market.
Ø According to systems the near-term, all eyes are likely to be on the 5300 level. The upside, if any is expected to be capped between 5500-5600 any breakout beyond this level will determine the near term trend for the markets.
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