Pre Open Thoughts: Holding On!!
Ø A wonderful Wednesday lay in store, as the worries of the
world take a backseat. After a couple of nerve-wrecking and highly volatile
sessions, some semblance of stability was much needed. Crude oil continues to
be the biggest bugbear along with mounting worries. Most Asian markets are in
the green. US stock indices finished with slim gains while their European
counterparts ended higher.
Ø Any material improvement will hinge on a multitude of
variables such as crude, inflation, sliding Rupee, FII flows and last but not
the least progress in policy making by the Centre.
Ø The Congress is facing a Herculean task of restoring
confidence among its cadres in the wake of the UP debacle. Elections in
Himachal Pradesh and Gujarat will be another big test for the Congress.
Ø The trend may continue to be positive in India if the rally
in the overseas markets sustains. At the same time, things could be choppy due
to thin trading volumes. Thursday’s F&O expiry might
add to the volatility.
Ø We would continue to urge caution as there is likely to be
some pressure at every rise. Intraday gyrations could remain elevated given the
murky global scenario. So, while you may be tempted to jump in seeing lower
stock prices, don’t get carried away. We expect implied volatility (IV)
to remain at or move up from current levels. A strong closing today can
offer in a ray of hope till then it would be wise to remain vigilant and avoid
risky bets.
Ø Till the time Nifty is trading above 5,200 we can expect
some bounce back or relief rally to 5,300-5,350 levels. A breakout above 5400
could lift the Nifty further up. Overall, it is likely to trade in a range of
5200 and 5400 in the immediate term.
Ø The FIIs were net sellers of Rs 8.6bn in the cash segment
on Tuesday while the domestic institutional investors (DIIs) were net buyers of
Rs 4.19bn, as per the provisional figures released by the NSE.
Ø Wipro will be in focus as its Q4 FY12 net profit
stood at Rs 14.81bn versus Rs 14.56bn in the preceding quarter.
Results Today:
Sterlite,
Lichsg, Yes Bank, Bel, India Cements, IBreal; OberoiRealty EID Parry India,
BASF India, Raymond, HCL Infosystems, Zensar Technologies, Supreme Industries,
Mahindra Holidays & Resorts India, Alembic Pharmaceuticals, Kirloskar
Brothers, Indo Rama Synthetics (India), Motilal Ostwal Financial Services, Rain
Commodities, Foseco India, Indo Rama Synthetic (India), Tata metaliks, Tinplate
Company of India.
Global Data Watch:
Japan
machine tool orders, UK Nationwide Consumer Confidence (Mar), UK Q1 GDP data
(provisional), UK index of services, US Durable Goods Orders (Mar), US Federal Reserve
Interest Rate Decision and Ben Bernanke's press conference.
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