Today, the bulls may look forward to inflating their gains for now as the market is set to continue its recent ascent. We expect another positive start and a firm close, unless global cues give way. Some short-covering is likely on account of F&O expiry. Traded volumes too have picked up this week, which is a healthy sign. Still, one has to stay rooted to the ground, as the market could face a few bumps in the coming month.
There are some signs of recovery in economic activity. Inflation is all set to move into sub-zero territory, though partly it is a statistical magic. Consumer inflation is still pretty high at around 7-8%. For a day you can stop thinking and ride the upmove with stop losses to protect your downside.
A few good economic reports in the US have added fizz to the recent rally across global markets. Wall Street and world markets have also welcomed the latest bank bailout plan by the Obama regime. Add to that encouraging commentary from top global banks, and you have a pretty good platform for the bulls to exploit. But be careful as the bottoming process is going to take time.
