Pleasant performance

A pleasant illusion is better than a harsh reality - Christian Bovee.

Markets always tend to surprise. The six-day uptick is a case in point. Just when most players were bracing for challenging times we got a pleasant bounce. And, going by the strong momentum, it looks like the party could last a bit longer before we see some cooling.

So, no prizes for guessing the start. It will be good once again, as world equity markets have extended this week’s solid gains.



There appears to be positive news all around. Greece has secured a crucial parliament vote for new budget cuts needed to receive international aid and avert a default. Germany has reportedly backed the French plan on rollover of Greek debt. US data points have not been bad of late.

Back home, food inflation has slipped while reports on current account deficit and core sector growth are also encouraging. Monsoon is a bit of a lottery at this stage.

F&O rollovers are suggesting a bullish trend in the short term. Q1 earnings will likely drive the sentiment in July. Keep an eye on auto and cement sales besides trade data and manufacturing PMI.

The NSE Nifty held quiet well above 5600 throughout Thursday. With the CNX Bank Nifty approaching the resistance levels of descending triangle, the Nifty is bound to witness some profit booking around 5675 levels, before attempting to take out its 200 DMA resistance.

Cairn India and ONGC will be in the spotlight after the Cabinet approved the Cairn-Vedanta deal with some conditions. IT companies might also attract some attention amid an adverse newspaper report on TCS. Realty companies may be under some pressure amid reports that the RBI has tightened rules for bank lending to the sector.

FIIs were net buyers of Rs 15.91bn in the cash segment on Thursday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net sellers at Rs 7.73bn on the same day. In the F&O segment, the foreign funds were net buyers at Rs 16.80bn.

The foreign funds were net buyers of Rs 7.71bn in the cash segment on Wednesday, as per SEBI web site. Mutual Funds were net buyers of Rs 1.34bn on the same day.