Wandering Wednesday…Mania in Mohali

"We wander for distraction, but we travel for fulfillment."- Hilaire Belloc.

It is easy to get distracted by what most people may tout as ‘the final before the final’. All Indians are hoping that the ‘Men in Blue’ come out triumphant in the clash of the titans. But the market is a different ball game altogether. Don’t let distractions affect you as it is the F&O expiry tomorrow.



The start today will be good once again, spurred by encouraging global cues and robust FII inflows. India Inc. may suffer a bit in terms of productivity but there is unlikely to be any material impact on market volumes. What could have a bearing is the last minute year-end rebalancing and F&O related gyrations.

Having said that, the undertone has turned around in the past few sessions. The key indices have surpassed the crucial 200-DMA levels, propelled by renewed pick-up in FII inflows. After being pessimistic on India in the first two months, they have resumed their bets in March. One has to see whether the trend persists in April or not.

Globally, most equity markets did well overnight, extending the recent rally despite a few headwinds in the form of the Japan tragedy, the MENA crisis and the eurozone debt troubles. Asian markets are holding firm too. Oil prices have softened a little.

Shares of PTC Financial Services will list today. The issue price was fixed at Rs 28 per share. Retail investors got a discount of Re 1. Also keep an eye on PTC, which is the parent company.

For the Indian market, the near-term outlook will hinge on whether the key benchmarks are able to cement their position above the 200 DMA. We expect the current positive upswing to continue with immediate resistance seen at around 5810 levels. After a series of strong days, the Indian market may witness some cooling at some point and consolidate around 5700. A breach of 5800 on a sustainable basis might confirm a short-term trend reversal.

FIIs were net buyers of Rs 12.91bn in the cash segment on Tuesday, according to the provisional NSE data. The domestic institutional investors (DIIs) were net sellers at Rs 4.74bn on the same day. FIIs were net buyers at Rs 7.25bn in the F&O segment.

The foreign funds were net buyers at Rs 4.82bn in the cash segment on Monday, as per final SEBI data. Mutual Funds were net buyers at Rs 2.29bn in the cash segment on the same day.