Pre Open Thoughts: Long Or Short!!

Pre Open Thoughts: Long Or Short!!

Ø Be life long or short, its completeness depends on what it was lived for. After long, a relief rally appears to be underway. How long it lasts, remains to be seen. The trigger is some new-found optimism that RBI cut key interest rates for the first time in three years by an unexpectedly sharp 50 basis points. A word of caution: don’t get into any aggressive buying mode as yet.

Ø The start today could be a tad better after US stocks gained. Asian markets are not doing too badly. The big question is whether we can convert any relief pop into wider gains. Given the macro-economic backdrop (both local and global), that may be slightly tough.

Ø International Monetary Fund raised global economic forecasts to 3.5% for 2012, up from 3.3%. However, the IMF has marginally lowered India's economic growth forecast to 6.9 per cent in 2012, from an earlier projection of 7 per cent, on weak global and domestic demand.

Ø On the whole, things should be okay today but outlook may turn choppy next week ahead of F&O expiry. Our markets will have to deal with it.

Ø As written in our previous notes technically nifty is delicately poised at 5200 level it may face resistance at 5320-5350 levels on the upside while the support remains to be at 5200. One need to take comfort from the fact that lows of around 5100-5200 that we saw some time back are likely to hold on.

Ø The FIIs were net buyers of Rs.4.41bn in the cash segment on Tuesday while the domestic institutional investors (DIIs) were net sellers of Rs.2.13bn, as per the provisional figures released by the NSE.

Results Today:

HDFC Bank, HCL Tech, CMC

Global Data Watch today:

EU Current Account s.a. (Feb), EU Current Account s.a.(Feb), UK Bank of England Minutes, UK ILO Unemployment Rate (3M) (Apr), EU Construction Output s.a. (MoM) (Feb), EU Construction Output w.d.a. (YoY) (Feb), Bank of Canada Monetary Policy Report, US EIA Crude Oil Stocks Change (Apr 13), New Zealand Q1 Consumer Price Index, Japan Adjusted Merchandise Trade Balance (Mar), Japan Merchandise Trade Balance (Mar).