Exuding confidence!

It ain't what they call you, it's what you answer to. ~ W.C. Fields.

Prime Minister, Dr. Manmohan Singh appears to be exuding confidence as he attempts to show that he is very much in command. The stock market too has been on a roll and investors would hope that the rollover takes place without breaking the momentum.

We have an opening which is all set to be positive. Things appear too good to be true. FII inflows remain encouraging. Indian indices could well end higher for a sixth straight session. Some choppiness may be there in late afternoon, which is usually the case on F&O expiry day. The upside from here will hinge on FII flows, global cues, domestic policy action(s) and Q1 earnings.



World markets can heave a sigh of relief as the threat of an imminent default in Greece has been averted. Greek parliament has voted in favor of an $112bn austerity plan necessary to secure emergency international aid. Markets across the globe have greeted the news with loud cheers. US stocks closed up for a third consecutive day. European markets did even better.

The euro has risen to a two-week high against the dollar. The wee bit of bad news is that crude oil is trading near a one-week high in New York after US stockpiles fell. Gold is up for a second day after dropping to a five-week low earlier this week. Asian markets are mostly higher today.

The Nifty has closed above the key psychological resistance level of 5600. This move has led to a breakout from the horizontal resistance line drawn from May's peak, forming a higher top pattern. In the short term, it looks like an overbought market. Therefore, one can expect some consolidation once the Nifty surpasses 5650.

FIIs were net buyers of Rs 6.69bn in the cash segment on Wednesday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net sellers at Rs 2.4bn on the same day. In the F&O segment, the foreign funds were net buyers at Rs 33.43bn.

The foreign funds were net buyers of Rs 10.16bn in the cash segment on Tuesday, as per SEBI web site. Mutual Funds were net buyers of Rs 1.06bn on the same day.