Today, we see the market extending Thursday’s fall at start. Thereafter, the key indices may turn rangebound and sideways. The Feb. futures are trading at a steep discount. F&O data confirms the widely held view that the two-day rally was led by short-covering. Though local funds are trying their best to lend their hand in keeping sentiment better, lack of buying from FIIs continues to play spoilsport. For FIIs to make a beeline for Indian stocks again, risk aversion needs to subside. This can only happen when the global economy bounces back from the current slump. When this will happen is anybody’s guess. But nobody’s guessing as yet. In a nutshell, there are still a lot of uncertainties for the market to start rising on a sustainable basis.
The latest earnings season, both locally and globally, has been bad, and things could get uglier going forward. Though short-term bear market spurts are not completely ruled out, trade carefully, as these are choppy times.
