Final flourish!

You must welcome change as the rule but not as your ruler. - Denis Waitley.

The world is all set to say good bye to a tumultuous 2010 and welcome 2011 with fingers crossed. For the markets, it was a year of consolidation after the big recovery of the previous year. As usual, there was no dearth of events – both nasty as well as positive ones. The Indian market’s performance was clearly among the better ones and the new year is expected to be equally promising.



Today, the start appears to be a positive one following Thursday’s smart gains. Though the Nifty rollover in the F&O segment was on the lower side, one should not get unduly worried as trading was pretty muted for most part of December. For the day, one should not have too high expectations as trading volume will be moderate. The key indices could end modestly positive but will be mostly rangebound.

The Nifty has sustained above 50 DMA and closed above 6100. The market is likely to remain firm as long as the Nifty sustains above 6000. Immediate resistance is seen around 6140.

In the near-term, inflation will remain a big pressure point for the Indian markets after food inflation shot up to a 10-week high. Also, data on the infrastructure growth for November is quite dismal after the previous month's strong show. One has to see how the FII flows shape up initially even as India Inc. comes out with its latest quarterly report card.

Globally, things are looking up for the US economy while in China there might be some cooling and more monetary tightening. The eurozone debt situation will continue to haunt the markets in 2011 as well.