Pre Market Commentary ...

Today we expect the market to open higher, but the mixed trend in Asia could spoil the party. Some cooling cannot be ruled out after the stupendous rally of the past three weeks. And when it happens the bulls too may just call it healthy!

The bulls will hope their tree of gains stands tall and doesn’t get chopped down. The roles appear to have been reversed as the bulls seem to be on a roll after a long, long time. The bears had been calling all the shots since the massive breakdown early last year. Suddenly, the tables turned earlier this month. World markets have rebounded, led by a rally in US shares amid some tentative signs of economic recovery. The bulls have greeted every positive development with renewed confidence. Be it the positive commentary from top banks or encouraging economic reports or the latest bank rescue measure.

The global buoyancy has rubbed off on the Indian market as well. Market participants have chosen to overlook possible negatives like the uncertainty over elections, ballooning fiscal deficit, a sluggish economy and deceleration in corporate profits. The gamble has paid off so far. What remains to be seen is whether the momentum can be sustained. For now though one may ride the rebound in sentiment.

With some signs of recovery in economic activity and also with Inflation almost near sub-zero territory, though partly a statistical magic bulls would look to extend gains unless global cues give way.