Nothing to depend on…

My brother, someone who I know I can always depend on! - Catherine Pulsifer The fatigued markets are searching for some positive cues they can depend on. Nothing seems to come by really expect a hope that some policy actions will be taken in the near future. Power outages and bomb blasts are leading the headlines these days. US indices closed lower after the Federal Reserve maintained status quo on its economic policies. Of course it was a day of yet another instance of algorithms going wild. The New York Stock Exchange said it is investigating trading activity in 140 stocks. The Fed said the United States economic activity "decelerated" and that more action could come in soon even as Operation Twist will continue. It is likely to hold interest rates near "exceptionally low levels" at least through late 2014. The dollar fell against the euro and Japanese yen, but gained ground versus the British pound. Oil for September delivery rose 79 cents to $88.85 a barrel. Meanwhile the rupee strengthened on Wednesday closing at 55.47/48 per dollar as against 55.64 on Tuesday. The outlook is flat again with no positive cues coming in from the Asian markets either. With lack of other triggers, the markets world over would turn its attention on European Central Bank meeting today. Hopes are some details on action to bring down rising borrowing costs in Italy and Spain could be heard. Investors are also happily lapping up mid-cap counters which have been beaten down. Just because a stock has tanked does not mean it can not go down further. Stay extremely cautious on counters with such high beta. Key Results Today: 3i Infotech, Cummins India, Glenmark Pharma, Hotel Leelaventure, Madras Cements, Oracle Financial Services Software, Satyam Computer Services, Ramco Industries, Shasun Pharma, TamilNadu Petroproducts Trend in FII flows: FIIs put in over Rs 100bn into the Indian equity markets in July - the highest monthly inflows in five months. FIIs were net buyers of Rs.4.41bn in the cash segment on Wednesday while the domestic institutional investors (DIIs) were net sellers of Rs.1.72bn, as per the provisional figures released by the NSE. Global Data Watch today: Australia Retail Sales (Jun), Australia Trade Balance (Jun), UK Halifax House Prices (Jul), UK PMI Construction (Jul), EU Producer Price Index (Jun), Spanish 10-year Obligaciones Auction, Spanish 2-year Bond Auction, UK BoE Interest Rate Decision, UK BoE Asset Purchase Facility (Aug), EU ECB Interest Rate Decision, EU ECB President Draghi’s Speech, US Initial Jobless Claims (Jul 28), US Continuing Jobless Claims (Jul 21), US ISM New York Index (Jul), US Factory Orders (Jun), Australia AiG Performance of Services Index (Jul)