Today, in Indian markets the bulls have had the pleasure of magic moments with red turning to green for quite a few days on their screens. Inflation is heading towards sub-zero levels. The truth is that this is just a statistical illusion. At the retail level (except for stocks), prices remain quite high. But that does not rule out the chances for further monetary easing.
The major indices may see some cooling today, especially at start. Global cues are nothing to write home about for bulls or bears. An improvement globally can bring the Indian indices back into green
With key indices managing to end above the crucial levels on Thursday, bulls would look to extend gains, provided positive cues from the global equity markets. Avoid mid-caps and small-caps as the current rally may soon fizzle out.
