Posted By : Kishore B.S
The IIP data came out today. Now one very important question is that what is the authenticity of this data. The January IIP data was about 7% provisional but it was revised to 1.1%. Now that is a very bad impression of our domestic authorities issuing data. February IIP came at 4.1% against 6.8% expected. Inspite of this the market was up. Now today we are having Italian bond auctions. How investors react to this bond sale will be watched very closely by markets all over the world.
The domestic factors as well as the global factors are growing weak. Yesterday I suggested that today will be a rally and people should exit all long positions. I still support this view. The upside in the market is capped to 5300-5350. It is a sell on rallies. The global scenario as well as the domestic scenario is pointing to a major pullback all over the world.
Tomorrow Chinese GDP data is going to be announced which will show the economic growth all over the world. Now if this data comes positive then there can be a rally in the market. But again this rally should be sold into. The market is not right to go long.
(Inputs Mr. Shubham Deva, A Stock Market Institute Associate, IIT Kanpur)