Today, Indian market should open strong today and remain so for most part of the day unless fresh bad news hits usBulls may feel at home even as the debate is on whether the recent strength is merely a dead cat bounce. We had mentioned on Tuesday that the market could rebound after a breather if global markets hold firm. Rightly enough US stocks shot up overnight on the back of some encouraging news on housing starts. Asian indices too are mostly up though European shares closed marginally in the red.
In part, the current rebound in global equities is due to technical factors. Stock benchmarks had been under pressure since the start of the year. In the US, the Dow and the S&P hit 12-and-a-half-year lows early last week. However, since then they have recovered smartly and so have other markets.
Thankfully, there has not been too many bad news during this period. On the contrary, there have been a few bright spots like positive comments from top global banks. However, there are genuine fears that stocks could re-test lows hit in Oct ’08.
