Pri Market Commentary ...

Toady,the strong global cues may lead to higher opening. Most global markets rallied last week as oil prices tumbled. Crude remains just above $130 per barrel. Asian markets are up sharply. Even the FIIs have been net buyers over the last couple of sessions. But, the heightened anxiety and uncertainty over the confidence motion, we expect the market to be volatile and rangebound.
What will happen to the N-deal, if the UPA falls the trust vote? Will we have early polls as well? Who will come to power at the Centre post elections? There are too many questions over the fate of the Government (and the N-deal).

We expect the market to cool off after an initial spurt. Technically, the Nifty breached the 20-DMA last week. This was largely due to massive short-covering (mostly by FIIs). The 1,000-point rebound last week was more of a bear market rally. It remains to be seen if the bulls can continue to make headway. The next level to keep an eye on is 4216 and 4500 after that. Fundamentally, things continue to be precarious (both locally and globally).