Weak trend across Asia; stick to your goals

In the absence of clearly-defined goals, we become strangely loyal to performing daily trivia until ultimately we become enslaved by it. - Robert Heinlein.

It’s just another usual Monday. The weak trend across Asia is set to subdue the opening. Japanese markets are shut today. We may have managed to sail through the first week of 2012 reasonably well but the year itself is likely to be a challenging one especially the first half.

Indian indices were more or less unchanged in Saturday’s special one-and-a-half-hour session. This week is crucial as the Government will announce the latest IIP and inflation data. Also, the Q3 earnings season will kick off in the right earnest. Infosys and HDFC will release their numbers on Thursday.



The major resistance for the Nifty is seen at ~4850 levels and a close above the same could reignite buying momentum in the near term. On the downside, 4700 remains important pivot below which recent upmove could turn void.

The euro is under pressure even as yields on the Italian and Spanish bonds remain elevated. The dollar index is closing in on the 81 mark. Brent crude oil is hovering around $110 a barrel and gold is trading above $1,600 an ounce.

The only positive as of now is that the US economy remains resilient. However, the eurozone remains the big problem area. Leaders of Germany and France are scheduled to meet later on Monday to discuss the debt crisis.

Important economic statistics are also due from China later this week.

The FIIs were net sellers of Rs 286.3mn in the cash segment on Saturday, as per the provisional figures released by the NSE. The domestic institutional investors (DIIs) were net sellers of Rs 60.9mn.

The FIIs were net sellers of Rs 1.03bn in the F&O segment on Saturday, according to NSE data.

The foreign funds were net buyers of Rs 5.49bn in the cash segment on Thursday, the SEBI data shows. Mutual funds were net sellers at Rs 579mn in the cash segment on the same day.

Global Data Watch: Australia home sales, Australia retail sales, Switzerland unemployment rate, Switzerland retail sales, Germany current account, Germany trade balance, Germany industrial production, UK Halifax house prices and US consumer credit.

Meanwhile, the Election Commission is likely to reschedule the first phase of the Uttar Pradesh assembly polls. It was to begin on February 4. The new date of the first phase will be announced shortly.