Hoping to sustain

Today’s start is likely to be lackluster owing to indecisive global cues. If you think your holdings will not sustain the volatility, abstain from doing too much. Just hang on till a clearer picture emerges either way.



All philosophy lies in two words: Sustain and Abstain - Epictetus.

No real fireworks for now. But the start to the pre-Diwali week has been good if not spectacular. The tough part is whether the bulls can sustain the momentum going ahead. Thursday’s F&O expiry will of course bring in added volatility.

Overall, the sentiment remains muted amid lack of incremental triggers. India Inc.’s report card has been mixed. In any case earnings for FY11 have been mostly discounted. One has to now see whether current stock prices support earnings growth for FY12.

Today’s start is likely to be lackluster owing to indecisive global cues. If you think your holdings will not sustain the volatility, abstain from doing too much. Just hang on till a clearer picture emerges either way.

US stocks managed modest gains on an encouraging housing report. European stocks eked out slim gains. Asian markets are mixed. We expect the ongoing sideways consolidation to continue in coming days and the Nifty to trade between 6060-6150. The Nifty might head higher if it manages to stay above 6150 for a reasonably longer period while support is likely to kick in at 6000 and at 5980.

The near-term outlook on the global economy and markets continues to be uncertain amid an impending Fed action early next month. The G20 meet of finance officials has helped defuse some of the tensions on trade and currency imbalances. Next month’s G20 leaders’ summit will be followed closely as well.

Among the key global data points to watch out for this week include: US new home sales, home prices, US advance GDP estimates for Q3, consumer confidence, UK GDP data, Germany's CPI report and the latest BOJ policy announcement.

The FIIs were net buyers of Rs. 5.87bn in the cash segment on Monday (provisionally), according to the NSE web site. Local funds were also net sellers of Rs. 3.86bn. In the F&O segment, the foreign funds were net buyers of Rs. 7.44bn on Monday.

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