Now showing - DMK drama

Drama is something people go through everyday. Change of character is nothing more than mood swings. ~ Kewana Bagby.

Well, just when the Indian market was looking like adding to the post-Budget gains comes yet another political jolt. The DMK has decided to pull out its ministers from the UPA II, ostensibly on differences over seat-sharing for the upcoming TN assembly polls. The DMK will offer issue-based support though.



Whether a formal split with the Congress is in the offing or not remains to be seen. Policy impasse and governance (rather the lack of it) has been one of the factors behind the market’s recent fall. The weekend development will add to the worries though political stability is not really a major concern as of now.

We expect a nervous start though things could improve later on if the global markets resume their advance and there is more clarity on the local political situation. Crude oil remains at uncomfortable levels amid deteriorating geopolitical situation in Libya and elsewhere in the Middle-East.

Intraday volatility is here to stay so stick to defensive plays. Be a patient buyer rather than buying soon and testing your patience. If the Nifty stays above 5450 it might have a shot at 200 DMA of 5655 in the coming days or weeks. Near-term support for the Nifty could kick in at 5510. If this level is breached, it could head further south.

FIIs were net buyers of Rs 5.85bn in the cash segment on Friday, according to the provisional NSE data. The domestic institutional institutions were net sellers at Rs 2.3bn on the same day. FIIs were net buyers of Rs 8.37bn in the F&O segment. The foreign funds were net buyers at Rs 2.8bn in the cash segment on Thursday, as per final SEBI data.