Today was an lackluster day where the indices moved in a very narrow range hovering between bullish and bearish sentiments with equal ease.
Though the markets made solid up-move on Friday yet the rally seems to have faded out with the indices not moving up after the big up-move, however some of the banking and metal stocks which failed to participate in the rally have been in the limelight for the last 2 sessions.
The US markets are also closed today due to which the direction for the global markets seem uncertain and also the EU summit today and tomorrow setting tone for the impending bailout eagerly awaited by the markets are to be announced putting the global markets on tenterhooks.
On the flip side there are rumors of the US economy to default setting fears similar to Greece but on a larger scale thereby jeoparding the Dollar valuation across the Globe, if that happens the Global markets might bite dust including our bourses, but on the brighter side this could set tone for lower commodity prices and lower inflation persisting in India providing it with the much looked after impetus to stand out and growth with higher rigor.
Though the rumors sets us with fire to be bullish yet there are many things to be set before that and for the time being it would be ideal to watch if the 5400 level would be taken out and the Upward Gap created on Friday would be filled setting the undertone of the markets ……………
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)