Tepid Tuesday…rangebound action!

A mind troubled by doubt cannot focus on the course to victory. - Arthur Golden.

Trouble for the market continues amid heightening worries over the debt distress in the US and eurozone. Officials in both these regions seem to be struggling to reach some agreement on how best to tackle the problem. Lingering concerns about the fragile state of the global economy is driving investors to the relative safety of precious metal. Gold futures have crossed $1,600; and in India also the prices of the yellow metal have hit a record high. Silver too has appreciated lately.



We expect another muted start as most Asian markets are in the red. Some recovery later is always possible, especially if the offshore markets see an improvement in sentiment. US stock indices closed lower again, as did their counterparts in Europe. We might see better action in terms of volumes and participation as the F&O expiry approaches. A few important companies will announce their Q1 results today. HDFC Bank is chief among them.

On the whole, the key indices are likely to trade in a 5500-5800 range in the near term. The medium term trend remains up, as long as the Nifty trades above 5440 on weekly closing basis.

FIIs were net sellers of Rs 930.1mn in the cash segment on Monday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net buyers at Rs 1.63bn on the same day. FIIs were net sellers of Rs 1.51bn (provisional) in the F&O segment on Monday.

The foreign funds were net buyers of Rs 1.45bn in the cash segment on Friday, according to the final SEBI data. Mutual Funds were net sellers at Rs 790mn on the same day.

Results Today: Ashok Leyland, Blue Dart, Cadila Healthcare, Chambal Fertilizers, Crompton Greaves, Greenply Industries, HDFC Bank, Honeywell Automation, NIIT Technologies, Prism Cement and SKF India.

Global Data Watch: German ZEW survey of economic senti