Waiting for tonight!

"We must be willing to get rid of the life we've planned, so as to have the life that is waiting for us." – J Campbell.



The Great Recession is Dead. Long live the Bulls. US stocks surged after a private research group announced that the ‘Great Recession’ ended in June 2009. The Dow clocked a triple-digit gain and the S&P 500 crossed a key technical level. However, the US market overlooked a sour report on Home Builders’ confidence and renewed concerns over euro-zone debt.

Market participants are waiting for tonight, to learn whether the Fed unveils any new asset purchase plan or hints at doing so in future. The FOMC commentary will also be important. Also look out for US housing data and an Irish bond auction. Some trouble likely here.

We expect a higher start due to positive global cues. With FII inflows in top gear the Sensex and Nifty will pierce new milestones. We would urge some caution given the problems plaguing the world economy. Also, the recent surge has been too fast (though not as fast as November 2007) and therefore calls for some consolidation/correction.

FIIs were net buyers of Rs17.92bn in the cash segment on Monday (provisionally), according to the NSE web site. Local funds were net sellers of Rs4.57bn. In the F&O segment, the foreign funds were net buyers at Rs9.6bn.

The foreign funds were net buyers of Rs17.15bn in the cash segment on Friday, according to SEBI data. Mutual Funds were net sellers of Rs3.45bn on the same day.