Rescue team arrives!

"Hope is the expectation that something or someone external, is going to come to our rescue and we will live happily ever after. - Dr. Robert Anthony.

After a fairly lackluster week, hope are of a good rally today - at least at start. Overseas markets are fired up after European leaders agreed to a new $229bn bailout plan for debt-plagued Greece that includes private sector support. They also strengthened their 440-bn euro rescue fund to buy debt of the struggling eurozone nations.



The euro has jumped against the dollar. The yen is down as global investors resume their buying of risk assets. Separately, there are reports that the Obama administration is cutting a deal with House Republicans to boost the US debt ceiling and reduce deficits by ~ $3 trillion over 10 years without any immediate increase in revenues.

Indian markets will also take cues from corporate results. So far, earnings have been mixed with a few nasty surprises. In the coming days, the focus will be on the RBI’s policy action, F&O expiry, monsoon and the parliament session. FIIs, meanwhile seem to have switched to a lower gear.

For the Nifty, the level of 5580 turned out to be major hurdle on Thursday. The rising support line which had been providing cushion to the market has now tuned into a resistance. The Nifty closed below 5550, which kind of puts the ongoing intermediate uptrend at some risk. Any pull back towards 5600-5630 must be dealt with caution. On the whole, the Nifty will see near-term support around 5500 and resistance between 5700-5800.

FIIs were net sellers of Rs 5.77bn in the cash segment on Thursday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net buyers at Rs 4.08bn on the same day. FIIs were net sellers of Rs 3.64bn (provisional) in the F&O segment.

The foreign funds were net buyers of Rs 311mn in the cash segment on Wednesday, according to the final SEBI data. Mutual Funds were net sellers at Rs 170mn on the same day.

Results Today: Akzo India, Allahabad Bank, Axis Bank, Colgate, Godrej Properties, Indiabulls Real Estate, Jet Airways, Motilal Oswal, NIIT, Praj Industries, Sasken, Tata Elxsi, Texmaco, Texmaco Rail, Thermax and Union Bank.

Global Data Watch: Germany's IFO index of business expectations, EU new industrial orders and Canada's CPI and retail sales.

Reliance group companies may attract some attention amid reports that a little known Canadian brokerage has come out with a negative report on the companies run by the two billionaire Ambani brothers.

Reliance Industries may also be hit by a report that Saudi Arabia is pushing for the withdrawal of anti-dumping duty on a key raw material for plastics. Reliance has a 70% market share in polypropylene.