Rhythm after a break!

Rhythm is the basis of life, not steady forward progress. - Kabbalah.

It probably was a welcome break for the bulls considering the battering they have taken in recent days. But for Axis Bank it was business as usual, as the private bank snapped up the equity broking and investment banking operations of Enam. It would be interesting to see how the market reacts to the swap ratio.



The start today appears to be a better one as compared to the past few sessions. We are looking at a steady start at best. Things could turn choppy later on given the anxiety over Ireland’s fiscal woes and monetary tightening in China.

The US data also remains more or less subdued, justifying the Fed’s decision to launch a $600bn QE2 to shore up a sluggish economy.

Asian markets are up marginally following a selloff earlier in the week. US markets closed flat while European benchmarks edged up.

The slowdown in FII inflows is a cause for some worry. Globally, the dollar remains firm while the euro is still under pressure owing to the eurozone fiscal woes. Commodities are soft as China has announced plans to rein in spiraling prices.

Technically, the Nifty on Tuesday violated important support of 50 DMA and closed below the same. The outlook is cautious in the near term although there is a possibility of a minor bounce back from 5970 levels which might form the base of a larger broadening pattern.

FIIs were net sellers of Rs 1.96bn in the cash segment on Tuesday (provisionally), according to the NSE web site. Local funds were net buyers of Rs 4.49bn. In the F&O segment, the foreign funds were net buyers at Rs 11.54bn.

RPP Infraprojects Ltd. IPO opens today and will close on November 22.