Pri Market Commentary ...

Today, after yesterday's steep jump, we expect the main indices to soften a little bit. Thereafter, the direction would hinge on global factors, particularly on the European markets. The European Central Bank (ECB) is all set to hike rates today to contain inflation. We will also have the US jobs report later in the day. And, of course there is oil, which will continue to dampen sentiment. If the ECB indeed raises rates, the euro will strengthen against the dollar, which may push oil further up.

Wednesday’s wonderful run may seem like a dream as bulls wake up to a new day. But plans of continuing the up-move could go awry. After a stellar rally, which took most market players by surprise, the bulls were hoping to extend the advance. Especially after being dominated by the bears for most part of the year so far. Some technical analysts suggest that good times may return soon. Their contention is that the Nifty rebounded from a level which marked 50% correction from the lows of May 2004, when the current bull run began.