Pre Open Thoughts: “Corrective” Rebound!!

Pre Open Thoughts: “Corrective” Rebound!!

Ø  We can be sure that the greatest hope for maintaining equilibrium in the face of any situation rests within ourselves. We do not rule out a ‘corrective’ rebound but be careful as volatility will remain elevated. We advise caution if the Nifty stays below5200. The undercurrent still remains fragile.

Ø  After being on a slippery slope for quite a while, global stock markets are turning around. The recent fall was pretty ferocious and a lot of ground still needs to be covered. Whether the current recovery is sustainable cannot be ascertained. Wait for some more clarity and stability before committing larger amounts. Watch out for IIP data later in the week. FII flows are the major cause for concern at the moment. Some material progress on reforms could provide a kicker here.

Ø  Meanwhile, the start today is once again going to be on a positive note. All indications are pointing that Nifty will hold the 5,100 mark. Nifty might face resistance  of 5180-5200; and the rally can be sustainable if the Nifty closes above 5200.US equities closed mixed overnight and so did their European counterparts. Asian markets too are trading on a mix note.

Ø  On Nifty 5180 - 5200 levels ,will be the levels to watch for as it may act as resistance. On down side 5000 to act as a good support.

Results Today:  

Asian Paints, Bajaj Hindusthan, Ceat, Central Bank of India, CESC, Dena Bank, Emami, Federal Mogul, GIC Housing, Glenmark Pharma, Hindalco Industries, IDFC, Kotak Mahindra Bank, Oriental Hotels, Puravankara Projects, Shriram Transport Finance, Tata Coffee, UCAL Fuel and Whirlpool.

Global Data Watch:

Germany Wholesale Price Index (Apr), Australia Trade Balance (Mar), Germany Industrial Production (Mar), US NFIB Business Optimism Index (Apr), US IBD/TIPP Economic Optimism (May), US Philadelphia Fed’s Plosser speech, US Fed’s Fisher speech, UK BRC Shop Price Index (Apr).