Post-Diwali blast on cards

"Patience is the ability to count down before you blast off." – Anonymous.

Samvat 2067 ended with a bang despite another rate hike. Mahurat Trading was a bit of a damp squib, as Indian investors awaited the outcome of the crucial eurozone summit. But, the start to Samvat 2068 promises to be a bright one, now that the much-awaited deal to contain the eurozone debt contagion has been sealed.



World markets have given a unanimous thumbs-up to the eurozone rescue package. Moreover, the US economy recovered smartly in Q3. Risk seems to be back in vogue, at least for the time being. The dollar is headed for a weekly decline.

The Dow is on course for its best month since January 1987, and the S&P 500 is on track for its biggest monthly rally since Oct. 1974. The CBOE VIX is down 41% in October. Markets in Brazil and Germany have entered the so-called bull territory.

Notwithstanding October’s gains, Indian markets have under-performed lately. So, may be it’s time for a catch up. Technically too, we are favourably placed with the Nifty breaking above 5160. It could go as high as 5600 provided the global cues remain positive and there are no nasty surprises in the near-term.

Banks will be in focus post the RBI policy review and the landmark decision to free interest rate on saving deposits. Public sector banks could gain amid reports of re-capitalisation by the Government