Coping with crises

"Peace is not the absence of conflict, but the ability to cope with it" – Anonymous.

After giving markets the government and the market some jitters, it seems like there could well be peace between the estranged UPA coalition partners – the Congress and the DMK. The sentiment will improve if indeed they decide to amicably settle their differences. The sooner it happens the better it would be for all concerned parties, including of course the market.




The positive political developments cannot really turn things around at start – we are staring at a lower opening given the overnight declines in the US and European markets. Asian markets are trading flat to mixed. Global markets are grappling with extremely high crude oil prices amid no sign of relief from the Middle-East turmoil. Risk appetite has softened a bit with gold flirting with new record highs.

We are dealing with a very tricky geopolitical situation and so remain at the mercy of the developments emanating from around the globe. The market may remain range-bound and yet volatile till there is some material improvement in the Middle-East. Locally, one has to see how the UPA performs as far as key reforms are concerned given the so-called coalition compulsions.

The NSE Nifty has formed a ‘hammer’ pattern on candlestick, but unless it is able to sustain above 5520 the implication of this positive move will remain muted. All eyes have been on the 200 DMA of 5655 for quite some time and will remain so till there is any meaningful breakout above that critical technical level.

FIIs were net sellers of Rs 922.4mn in the cash segment on Monday, according to the provisional NSE data. The domestic institutional institutions were net buyers at Rs 455.7mn on the same day. FIIs were net sellers of Rs 12.64bn in the F&O segment. The foreign funds were net buyers at Rs 6.25bn in the cash segment on Friday, as per final SEBI data. Mutual Funds were net sellers of Rs 37mn in the cash segment on the same day.