The China factor

Moderation is the secret of survival. - Manly Hall.

India largely survived the China scare as did the US markets. For most part of Monday, even the Chinese markets were firm before things took an ugly turn in late trading. That had a sentimental impact on India as well as the European markets.



The start today could be a better one but the moot point is whether those early gains will stay by the close. Keep a watch on the overseas markets, particularly China after the weekend interest rate hike. With not much happening in the main indices, the broader market could hog the limelight.

The Nifty failed to sustain above 50DMA of 6023 and if it closes below 5970, the short term trend could turn negative.

Airline stocks might see some action as severe cold weather is taking a heavy toll across the Northern Hemisphere even as fog hits air and rail travel in India.

The 2G saga continues with the PM offering to depose before the PAC even as the CAG appeared before the parliamentary panel. The political stalemate is something that one will have to keep an eye on in view of the upcoming Budget.

FIIs were net buyers of Rs 2.46bn in the cash segment on Monday, according to the provisional figures from NSE. The domestic institutional investors were net sellers at Rs 1.13bn. In the F&O segment, the foreign funds were net buyers of Rs 2.24bn.