Finally, some relief!

Truth makes many appeals, not the least of which is its power to shock. - Jules Renard.

Thank god there was no afternoon shocker on Thursday as was the case on Wednesday. After a five-day rout we had a solid advance. This could sustain as FIIs were net buyers after a long hiatus. Also, the Nifty breached short term resistance of 5470 and closed above 5500. Some short covering is expected around 5550, which may take the Nifty to 5570. A close above 5650 might just shore up investor confidence.



However, any major up-trend will take a while to develop and won’t be without hiccups. Resistance is likely at 5600 and later around 5700-5750.

We expect a flat to steady start after which the indices could gain traction. But be careful as the undertone remains jittery and avoid getting hit by intraday volatility. FII flows will continue to have a bearing on overall sentiment and so will the upcoming Budget.

US economic data has improved steadily, propelling the Dow above 12,000. All eyes are on Friday’s monthly jobs report.

Balrampur Chini, Cipla, Hindustan Copper, NCC and Suzlon will declare their results today.