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.
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