Posted By : Kishore B.S
The European and US markets were flat to negative. The global scenario is stable. So, a pull back rally can’t be ruled out.
On rupee front, the markets became a bit edgy since it has regained the 64 levels against dollar. Still it is a comfortable level for the FIIs and DIIs as compared to 68-69 levels. The IIP numbers surprised with a 2.3% growth year on year. The capital goods sector showed the maximum growth. But as said earlier this data has become redundant due to the time lag. The important data is the CPI which came at 9.4 % a tad lower than the expected. Now this creates hope for a positive guideline by the RBI. A rate cut is not expected as of now, but if RBI surprises by giving even a CRR or SLR cut the sentiments in the market will turn positive.
As of now there seems that some more fire power is left in the rally. So, all those people who ave shorted the market keep a strict stop loss of 5920-5930.