Today,we may see some bounce early on in today’s session. However, anxiety ahead of IIP and Inflation data, coupled with mixed global cues could spoil the party for bulls later. IIP is expected to be flat to marginally negative. A bigger fall in IIP may heighten worries over the health of an already sluggish economy.
Meanwhile, inflation is expected to fall sharply from 3.03% to around 2.3%. While that may be good news on one hand, it also points to a worsening macro-economic situation. Guard your wicket as coming on the front foot could often get you stumped.
A short-term spurt shouldn’t lead one to believe that we are out of the woods. We remain in a bear market, and such rallies are only to be expected. A sustained recovery will not take place in the absence of stability in western financial system.
