Swim with the current

We are expecting a sedate start today, in line with the global trend. US stocks barely advanced on Friday. European markets ended in red. Asian benchmarks are mixed. Going ahead, things might get a bit more volatile due to the F&O expiry.

In matters of style, swim with the current; in matters of principle, stand like a rock. - Thomas Jefferson.

World markets seem to be in a state of limbo right now. Corporate earnings are competing with concerns about economic recovery. For India too the story is no different; the September spark is clearly missing. The Sensex and the Nifty are in a sideways consolidation mode. Fresh fireworks ahead of Diwali look less likely for now.



We are expecting a sedate start today, in line with the global trend. US stocks barely advanced on Friday. European markets ended in red. Asian benchmarks are mixed. Going ahead, things might get a bit more volatile due to the F&O expiry.

The Nifty is likely to trade in a range of 5950-6150. The F&O expiry could take place between 6000 and 6100. It might head higher if it manages to stay above 6150 while support is likely to kick in at 6000 and at 5980.

G20 finance and central bank officials have vowed to refrain from keeping their currencies artificially depressed to boost exports. All eyes are now on next month’s leaders’ summit.

November’s FOMC meet will be crucial in this context. QE2 is what everyone is betting on, but how much stimulus the Fed will unveil is uncertain. US congressional elections will be held before that.

Back home, the RBI will announce its latest policy action or lack of it around the same time. Results will continue to pour in till the middle of next month.

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

The FIIs were net buyers of Rs5.84bn in the cash segment on Friday (provisionally), according to the NSE web site. Local funds were also net buyers of Rs3.27n. In the F&O segment, the foreign funds were net buyers at Rs5.19bn. The foreign funds were net buyers at Rs9.76bn in the cash segment on Thursday.

Results Today: Adani Power, Aditya Birla Money, Amara Raja Batteries, Aventis Pharma, Bayer Crop, Crompton Greaves, EID Parry, HOEC, HUL, Idea Cellular, LMW, Madras Cements, Mahindra Holidays, Mundra Port, Petronet LNG, P&G Hygiene, REC, Rolta India, Shree Renuka Sugars, Tata Coffee, TTML, Titan Inds and United Bank.