We expect the market to continue this week’s momentum. However, one should not get carried away as most of this is led by short covering. Ensure a timely exit so that one doesn't get caught on the wrong foot.In reality, the bulls seem to now be on Cloud 9. The good mood is largely due to strong global markets, which have held up despite unprecedented job cuts and poor earnings. Traders and investors alike are hoping that the much-hyped stimulus by Barack Obama will be able to achieve what the previous ones have failed to do so far. The House of Rep. has already cleared the bill. The Republicans however abstained from the vote. Plans are also afoot to put all the toxic assets into a so-called “bad bank” in a bid to shore up the credit markets. Obama’s team may announce the outlines of its plan next week.
Back home, the Government has announced another fuel price cut. The move will cheer automakers, consumers and the markets. But, shares of Oil PSUs may take a knock. Inflation will be announced today. It is likely to fall after a minor blip. The fuel price cut will take it down further.
Markets would look to extend gains again however, trading might turn volatile on account of F&O expiry. While, on the global front, the Federal Reserve will make an announcement later today after its two-day meeting.
Markets would look to extend gains again however, trading might turn volatile on account of F&O expiry. While, on the global front, the Federal Reserve will make an announcement later today after its two-day meeting.
