Today, there could be some cooling in Indian markets, if not today than over the next few days. One must remain guarded even though the ongoing rally may prompt some to reckon that the worst is over. Put higher trading stop losses and ride the short-term spurt. And don’t forget to lock in gains. The market had a fairy tale ending on Monday led by banking bigwigs amid optimism that the bond rally will perk up their earnings for the Oct-Dec quarter. Banks will continue to be in focus as the Prime Minister has reportedly asked the RBI to consider further reduction in the CRR and short-term rates.
The Government is also set to unveil the second round of fiscal stimulus package in the next few days to spur economic growth. Reports also say that the Centre is contemplating further cut in fuel prices.Having said that, any advance may not be sustainable due to lack of buying interest. The overall trend remains negative due to the global economic gloom. There is no dearth of bad news amid rising geo-political tension in the middle-east and the ensuing bounce in oil prices.
The upcoming result season may also throw up some negative surprises.
