World is on the move

"Strength does not come from physical capacity. It comes from an indomitable will." - Mahatma Gandhi.

Friday’s minor blip deprived Indian markets of a strong weekly finish, although the broader market held its own. Nothing to worry, as the momentum still remains in tact, with world markets cheering a surprise gain for the US manufacturing PMI. The encouraging US data came on a day when most national manufacturing PMIs registered a drop.

Risk appetite is back globally, thanks to Greece successfully averting eurozone’s first sovereign debt default. The euro is at three-week high versus the dollar. The yen is down. Gold futures tumbled to a six-week low on Friday while crude oil has recovered from recent lows.

The opening in the Indian markets is expected to be solid, as most Asian markets are up smartly. US markets will be shut today due to the Independence Day holiday.

The major short-term challenge for the NSE Nifty will be breaching the resistance of 200-DMA - placed at around 5750 levels. There could be a medium-term trend reversal if the Nifty manages to surpass the critical technical barrier.

The ride from here on may witness some hiccups. Corporate earnings will be the key driver for the month along with FII flows and monsoon. For the week, the global investors will closely watch central bank policy meetings in the UK and the ECB besides the US monthly jobs data.

FIIs were net buyers of Rs 5.99bn in the cash segment on Friday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net sellers at Rs 4.55bn on the same day. In the F&O segment, the foreign funds were net buyers at Rs 4.59bn.