Pre Open Thoughts: The May Pattern
Ø Mock not the fallen, for slippery is
the road ahead of you. Things have turned a little sour for world equity
markets in May. Investors seem to have taken the old axiom of 'sell in May and
go away' seriously. The slide is likely to persist at least at the start.
Ø The Indian market seems to be on a
slippery slope more or less in tandem with world equity markets. The eurozone
situation continues to threaten to spiral out of control.
Ø The dollar’s sudden upsurge has also
had a bearing on risky asset classes. Add to that domestic headwinds like
inflation and policy stalemate on key issues, and you have a heady cocktail.
Technical and derivative indicators are not supportive either.
Ø We advocate caution in the short
term as Nifty trades below 5000 here could be a minor bounce after a steep
selloff but don’t aggressively buy into it as there could be further weakness.
Volatility could escalate from here on.
Ø The FIIs were net sellers of ~Rs
3.99bn in the cash segment on Tuesday while the domestic institutional
investors (DIIs) were net buyers of Rs 2.57bn, as per the provisional figures
released by the NSE.
Results Today:
Ranbaxy
; PNB; IRB; Arvind; NIIT ;GVKPIL , Triveni Engineering & Industries, Vardhman
Textiles, TV18 Broadcast, ABB, Gammon Infrastructure, Zuari Industries, United
Breweries (Holdings), Mangalore Chemicals & Fertilizers, Uttam Galva
Steels, Union Bank of India
Global Data Watch:
Japan
Leading Economic Index (March), Japan Coincident Index (March), Japan Current
Account (March), Japan Trade Balance – BOP Basis (March), Germany Trade Balance
(March), Germany Current Account (March), Germany wholesale price index
(April), US Wholesale Inventories (March), US Fed Minneapolis’s Narayana
Kocherlakota's speech.
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