Pre Open Thoughts: Obstacles Remain!!!

Pre Open Thoughts: Obstacles Remain!!!

Ø  A great obstacle to happiness is the expectation of too great a happiness. India has lost its charm among investors due to its burgeoning economic problems paralyzed by the government's inaction , sticky inflation, and a sliding rupee which is eroding FII investments in shares and debt.

Ø  The overall undercurrent still remains shaky and fragile. FIIs don’t appear to be too excited to pour in a lot of money into India. Retail participation is negligible. This week is devoid of any major domestic event, barring of course the ongoing results. US stocks recovered from session lows, but European indices slipped on downbeat data. All eyes will be on the ECB policy meet later today. Asian markets are mostly in red.

Ø  Most investors understand the political problems in India, they are aware of the taxation issue and really want a positive or negative but a clarification on that at some point in coming days.

Ø  The Nifty is likely to be in a trading zone of 5200-5400 in the immediate future. A breakout above 5400 could take the Nifty towards 5600 But, it will face selling pressure along the way.

Ø  On the down side a break below 5150 will take nifty to slide to 5000 levels. Overall, the trend may remain range bound and sideways in the near-term amid a mix of local and overseas headwinds.

Results Today: Aventis Pharma, Finolex Cables, Great Eastern Shipping, Gujarat Pipavav Port, Ingersoll Rand India, KEC International, Marico, NDTV, Piramal Healthcare and Nitco.

Global Data Watch: UK Nationwide Housing Prices (Apr), UK Purchasing Manager Index Services (Apr), EU Producer Price Index (Mar), ECB Interest Rate Decision, ECB President Draghi’s speech, US Initial Jobless Claims (Apr 28), US Continuing Jobless Claims (Apr 21), US Nonfarm Productivity (Q1), US Unit Labor costs (Q1), US ISM Non-Manufacturing (Apr), US Fed’s William Dudley’s speech, US Fed’s Lockhart’s speech and US Philadelphia Fed’s Plosser’s speech.