Pre Open Thoughts: Watchful & Vigilant!!!

Pre Open Thoughts: Watchful & Vigilant!!!

Ø Learn from yesterday, live for today, hope for tomorrow.. If you had gone to sleep worrying about the headwinds in store, this morning comes with an air of hope. You can take some comfort from the fact that the Indian indices have been showing resilience, the trend is likely to stay intact this morning.

Ø Older the wine, better it is!!! Nifty for FEB Closed - 5385. Jan'12 Closing - 5199. Historically it is observed that 9 out of 10 times whenever January High was crossed during the same year, indices gave a big up move during that year. And hurray Nifty/Sensex both crossed Jan'12 highs & also sustained well above the previous months high. If History repeats this is going to be the D-Year for investors.

Ø We would though suggest to be watchful and vigilant as uncertainties abound and volatility is likely to prevail. While external factors are beyond our control, we could see some improvement in overall scenario.

Ø The short-term sentiment will be driven by the outcome of important events that are lined up over the next few weeks some of which are expected to have a major bearing on the market. Among the crucial ones include: outcome of UP elections, RBI policy meeting, Union Budget and domestic economic data like IIP and inflation

Ø ONGC will remain in the spotlight as the Government will auction a 5% stake in the state-owned energy major. A panel of ministers has fixed a floor price of Rs 290 per share for the share sale in ONGC.

Ø On the other hand , noticeable short-covering can be expected if the Nifty closes above 5550, which may eventually lead the index to move towards 5700 levels. The comforting factor for the markets is FII flows are still on the positive side.

Ø The Nifty is likely to trade in a range of 5300 and 5600. We could see a choppy session with intraday gyrations possibly peaking in the afternoon.

Ø The FIIs were net buyers of Rs 5.79 bn in the cash segment on Wednesday while the domestic institutional investors (DIIs) were net sellers at Rs 4.31 bn, as per the provisional figures released by the NSE.