Slow and steady!

Focus on learning at various venues before you settle down for a steady position. - Rocco DiSpirito.

It is difficult to really settle down as uncertainty prevails over a whole host of issues – domestic and global. The start is likely to be soft to steady as Asian markets appear to be clueless.

The IMF has confirmed that the global economy is slowing, with the developed world in a state of turmoil. The IMF has also lowered growth forecast for emerging nations like China and India.

US markets ended off session highs; reverse was the case in the previous session. So, volatility continues to be high and could rise in the run up to next week’s F&O expiry.

European markets closed with strong gains amid optimism that Greece will soon receive a green light for a second round of financial aid from international creditors. Greece has reported progress in talks with the EU and IMF officials over fresh austerity measures, but a final deal still remains elusive.

The near term prospects for the Indian markets might remain positive as long as the Nifty holds above 5100 on a closing basis. Immediate resistance is seen at 5335.

Currency market has been going through a churn as well, with the Rupee sliding to a two-year low. So, watch out for stocks that derive a majority of their earnings from exports. For instance, the IT and Pharma companies.

Markets are predicting an ‘operation twist’ from the Fed policymakers. Whether Mr. Bernanke & Co. obliges or not is a mystery. Meanwhile, the Republicans have warned the Fed against any further easing.

FIIs were net buyers of Rs 3.18bn in the cash segment on Tuesday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net sellers at Rs 3.17bn on the same day.

FIIs were net buyers of Rs 3.9bn (provisional) in the F&O segment.

The foreign funds were net sellers of just Rs 40mn in the cash segment on Monday, as per SEBI data.