Pre Open Thoughts: MAY IT END!!!

Pre Open Thoughts: MAY IT END!!!

Ø  We can be sure that the greatest hope for maintaining equilibrium in the face of any situation rests within ourselves. After a weekend, investors will hope to maintain equilibrium as an action-packed week lay ahead. The May derivative settlement hasn’t been great and short rollovers seem to be increasing. There is a slight chance of a further breakdown in sentiment but expect value buying to support the indices at lower levels.

Ø  Status quo seems to be UPA II’s mantra for stability but the persistent struggle on policy making doesn’t bode well for the economy. The markets will continue to be jittery unless the Government manages to spring a pleasant surprise. The global cues however, point towards a weak opening. Meanwhile the DTC Bill will be tabled in monsoon session of parliament Reports  also said that the Government is in negotiations with ratings firm Fitch to push for an upgrade of India’s debt rating.

Ø  On currency front, the rupee plummeted to a record low amid rising risk aversion and worsening external account. The RBI has tried to check the rupee’s fall but the efforts haven’t yielded the desired results. Whereas the  euro also fell to a four-month low versus the US dollar, extending declines to a third-straight week, amid concern that the eurozone sovereign-debt crisis is worsening.

Ø  One shouldn’t get carried away by any  positive start to as equities continue to face a spate of problems. The high and rising twin deficits are a major cause for concern.

Ø  On Nifty a move past 4930 levels could result in a relief rally towards 5030. Till then, the outlook remains cautious.

Results Today: Adani Enterprises, Akzo India, Gitanjali Gems, Kalpataru Power, NALCO, Pfizer, Tata Communications, Wyeth and Zee Entertainment..

Global Data Watch today: Japan All Industry Activity Index (Mar), Japan Leading Economic Index (Mar), Japan Coincident Index (Mar), EU Construction Output (Mar) and US Fed’s Lockhart’s speech.