A lot remains to be done

One never notices what has been done; one can only see what remains to be done. -Marie Curie.

Well, looks like the euphoria over the US debt deal has given way to concerns about the health of the global economy. Manufacturing PMI reports from Australia to the US have shown continued moderation. Concerns have also surfaced over the adverse implications of the large spending cuts in the US on the world’s largest economy. In addition, a possible downgrade of the US debt rating is still lurking.



US stocks reversed early gains to finish in the red. Across the Atlantic, European stocks suffered nasty cuts. Asian markets this morning are mostly lower. Nifty futures trading in Singapore are pointing to a weak start.

The trading for the rest of the day will hinge partly on global cues and partly on domestic factors. DLF, MMTC, Piramal Healthcare and Power Grid are among the few leading companies declaring their results today.

Meanwhile, the Government is trying its best to convince all that there is no policy drift and that reforms are on track. The monsoon session will be a key test, as a spate of crucial bills are slated for presentation.

We expect the Nifty to trade with a positive bias as long as it holds above 5460 with immediate resistance seen at ~5575. In case of further downside, it may find support around 5365, while resistance is expected at 5680 (100 DMA) and 5700 (200 DMA).

FIIs were net buyers of Rs 868.3mn in the cash segment on Monday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net sellers at Rs 952.6mn on the same day. FIIs were net buyers of Rs 1.28bn (provisional) in the F&O segment.

The foreign funds were net sellers of Rs 6.18bn in the cash segment on Friday, according to the final SEBI data. Mutual Funds were net buyers of Rs 1.08bn on the same day.

Results Today: Berger Paints, DLF, Elecon Engineering, Firstsource, Future Capital, Gulf Oil Corp., MMTC, Monnet Ispat, Oracle Financial, Piramal Healthcare, Power Grid, Radico Khaitan, Titagarh Wagon, UB Holding and Whirlpool of India.

Global Data Watch: Reserve Bank of Australia (RBA) policy meet, US personal consumption expenditure and personal income and US vehicle sales.