Precariously poised

In a gentle way, you can shake the world. - Mahatma Gandhi.

A minor tremor shook up Delhi following a powerful earthquake in southwestern Pakistan. The capital will remain in the spotlight due to the impending Cabinet reshuffle today. A full-fledged one is likely after the Union Budget.




The real worry is the policy impasse and the lackluster performance by the UPA II. Opposition continues its tirade against the Government on various issues, setting the stage for a stormy Budget session. Hopefully, there won’t be any major political tremors.

Meanwhile, the market seems to be delicately poised after having averted further setbacks for the time being. The big question is whether the recovery can be sustained or will the market slide again. Keep an eye on the Dollar-Rupee rate even as FIIs remain on the sidelines.

We are set for a steady start. It will take a few positive days with better volumes to retrieve the lost ground and turn things around. The Nifty could face some resistance around 5800 and it will take a while to cross 6000 again. On the way down, 5620-5630 could act as good support.

Results have started trickling in and there have been a few nasty surprises like Infosys and Exide. The Tata Steel FPO opens today.

HCC could gain as Lavasa has received some reprieve from Jairam Ramesh & Co. The RBI meet next week will be critical. If we get lucky, the much-awaited EGoM on fuel prices could see light of the day this week.

Globally, a slew of Chinese economic statistics are due on Thursday. Chinese President Hu Jintao has started his US visit.

Results Today: Aptech, Bajaj Auto, Bajaj Holdings, HCL Tech, Hindustan Zinc, Infotech Enterprises, LIC Housing, Noida Toll, Orchid Chem, Peninsula Land, Torrent Pharma and TTK Prestige.

FIIs were net buyers of Rs 725.4mn in the cash segment on Tuesday, according to the provisional NSE data. The domestic institutional institutions were net sellers at Rs 262mn. FIIs were net buyers of Rs 21.08bn in the F&O segment. The foreign funds were net sellers of Rs 537mn in the cash segment on Monday, according to the SEBI web site.