Seeking redemption

Stability is not immobility. - Klemens Von Metternich.

After the mayhem of last week, the market will look to find some stability. The bulls will try their best to put the bribes-for-loans scam behind, but whether they are successful remains to be seen. A mix of domestic and global headwinds will continue to cast a shadow on the sentiment.



The start today would be cautious as Asian markets are indecisive. Barring Japan other markets are in red. US and European markets sold off on Friday amid growing concerns over the eurozone sovereign debt issue. Meanwhile, European officials have announced a $112bn rescue package for Ireland.

The war of words between South Korea and North Korea continues and will continue to weigh on world markets. US jobs report, Chinese manufacturing PMI and ECB interest rate decision are some of the global economic events to watch out for.

Back home, Q2 GDP data will be announced on Tuesday. Also keep an eye on monthly Auto and Cement sales, besides the latest trade data and manufacturing PMI.

Use any rebound to get rid of ‘questionable’ stocks in your portfolio. Get into quality ones with sound fundamentals and earnings visibility.

Any close below 5,690 levels could aggravate further selling pressure in the market. However, as the recent decline has retraced almost 38.2% of the entire up-move beginning from 4,786 till 6,284, bounce back remains a possibility. It will be confirmed only after a close above 5900 levels.