Pri Market Commentary ...

Today, we expect a spillover of the recent positive momentum. Key indices have been on a rise over the past 5 sessions, with the Sensex notching up gains of 2,300 points. So, one needs to be cautious, as profit booking is not ruled out at higher levels. Lack of monsoon in western and southern parts of India could affect crop output, resulting in price increases.

Inflation will be announced today. If inflation rises sharply and there are any negative surprises on the earnings front, the market could pare initial gains. Index heavyweight RIL will also announce its quarterly numbers today.The current run-up looks more a bear-market rally rather than beginning of a fresh upturn. Hence, one must remain guarded at all times.