Today, the bulls would look to carry on the momentum, however, there could be wild swings ahead of F&O expiry. Also, some resistance is likely at higher levels as investors could turn cautious ahead of an eventful April. We will have to contend with earnings, elections and RBI policy next month.
After an arduous six-year drive, the Tata Nano has finally found some stability and will hopefully roll on smoothly. Ratan Tata’s engineering marvel could potentially turn out to be a game-changing product. However, some teething troubles are a given. Whether it is a boon or a bane for Tata Motors only time will tell.
The bulls too are driving ahead as markets globally seem to be on overdrive. The latest catalyst powering the global rally is the US government’s plan to buy banks’ soured assets and get credit flowing again. The news was out early on Monday morning, sending stocks in Asia and Europe sharply higher. The Wall Street followed the global trend with the key indices there up 6-7%.
The fact that the US news was already discounted yesterday leaves limited scope for the Indian market to react to the Wall Street rally. Still, we will see the key indices building on the recent momentum. Banking shares are likely to be among the leading gainers.
Remember, except for the current half-hearted sentiment, things haven’t changed dramatically. The upside appears limited. Check your fuel before planning a long drive.
