March-ing ahead!

The real winners in life are the people who look at every situation with an expectation that they can make it work or make it better - Barbara Pletcher.

The seven-week winning streak of the Indian market is under some threat after two relatively weak sessions. The main indices could close the week in red for the first time this year. It is not necessarily a bad thing. A pause is always healthy after such a rise. For those who missed the rally, such corrections could be a blessing in disguise.

The market could consolidate in a sideways fashion in the near term. Most participants won’t want to take a chance in the run up to important domestic events next month. At the same time, uncertainties over the European debt crisis and geopolitical tensions persist.



The start today is likely to be circumspect. Asian markets are struggling for direction, notwithstanding a positive finish on Wall Street overnight. Key European markets recovered from day’s low but closed mixed.

Keep an eye on FII flows, which have been quite robust so far. Q3 GDP data and LTRO-2 by the ECB will among the events to keep on one’s radar for next week.

The Small-Cap and Mid-Cap stocks have corrected much more than the Large-Cap peers in the past two sessions. They had out-performed the frontline shares prior to this week's pullback. One must exercise caution and restraint while dealing in these shares.

A ‘doji’ like formation in Thursday's trading session indicates indecisiveness after a bearish engulfing pattern on Wednesday. Any upmove beyond 5570 has the potential to negate the bearish structure and reinforce bullish momentum. One should wait for a breakout above 5570 to initiate fresh long positions.

Trend in FII flows: The FIIs were net buyers of Rs 1.04bn in the cash segment on Thursday while the domestic institutional investors (DIIs) were net sellers at Rs 6.4bn, as per the provisional figures released by the NSE.

The FIIs were net sellers of Rs 4.7bn in the F&O segment on Thursday, according to the provisional NSE data.

The foreign funds were net buyers of Rs 9.67bn in the cash segment on Wednesday (Feb. 22), as per SEBI web site. The Mutual Funds were net sellers of Rs 6.25bn in the cash segment on the same day.

Global Data Watch: RBA's Governor Glenn Stevens Speech, G20 gathering of finance ministers and central bank governors, Germany Q4 GDP, UK GDP data, US Consumer Sentiment Index (Feb) by Reuters/Michigan, US new home sales and speech by three Presidents of the Federal Reserve.