Stock markets will remain always stock markets swaying their own way irrespective of the news and events happening across the Globe and moves in its own glory.
Our Indian Indices are witnessing an event similar to my words above whereby most of the positive and negative news both are getting digested, discounted at that particular moment and the markets are moving in the most frustrating range bound for the last fortnight wherein the Nifty has been between 5000-5160.
Though such events are usually filled with lot of volatility and frustrations but the outcome of such moves are worth the wait since they bring in with them lot of unknown huge rewards which makes the wait worthy.
Today our indices opened on a negative note tracking the global markets but the recovery was faster during the initial hours of the trading session itself and the rest of the day just witnessed the momentum between the lows and highs set during the initial hours. The depreciation of the Rupee to new lows against the Dollar is the larger concern now which has gained significance off late from the Crude which was affecting the Inflation largely but the recent fall in Crude prices have not been beneficial due to the surge in Dollar.
If the trend reverses with the Rupee gaining against the Dollar due to some action by the RBI in the days to come would help our indices to a large extent whereby we would break the range.
The European indices are trading in Red at the current time due to lower than expected German Business Confidence Index in the last 2 years. Any positive signals from the meet of German, France, Spain and Italian leader happening today along with US measure could give the silver lining for the next week when the Futures are expiring for the current month.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)