Today, the outlook is positive with most Asian markets up smartly this morning. US stocks broke a two-day fall on the back of a merger in the housing sector and speculation of a bailout for life insurers. Keep an eye on the weekly inflation numbers as well as February’s IIP data. Given the extended weekend, there could be some cooling later on.
Looks like the bulls have tasted blood. Despite weak global markets our market staged a remarkable turnaround. The market breadth continues to be strong as “momentum trading” seems to be in vogue again. In another healthy sign, trading volume and turnover too have picked up. In fact, the broader indices outperformed the frontline rivals by a wide margin. Some argue the gains are operator-driven.
We see the momentum continuing though for a few more days till it faces a big hurdle. This could be in the form of bad earnings or guidance, unfavourable outcome in the Lok Sabha polls or fresh bad news from the global markets.
After witnessing a huge recovery on Wednesday, markets players would await for the IIP and inflation data to be released. Global cues would yet again play important role in dictating trend atleast in the opening trades.
