Today, with the monsoon continuing to elude us, bulls may see some of their earlier gains evaporate in no time especially at the start. Apprehensions may be on the rise as stocks in US and other global markets were down amid concerns that the euphoria over "green shoots" may have been overdone. The worldwide economic recovery may take longer to unfold, opine some.
The stability of the euro-zone's financial sector remains under threat, warns the ECB. Economic recovery is still in its early stages, with further pain still ahead, says US Treasury Secretary Timothy Geithner. A lot of other experts also feel that the recent bull-run is not sustainable as current lofty valuations do not match visibility on earnings.
But, but, but….India is said to be relatively better placed than others due to strong domestic demand. As long as FIIs keep their money taps open, the Indian market and economy should not have too many issues. On Monday, however the FIIs were big sellers, as were the local funds. Some more cooling is expected at start. A technical rebound will hinge on global trends. Didn’t we say temporary apprehensions!
With the NSE Nifty index shutting shop below the 4500 levels, the index might find support at around 4350-4360 levels in the coming days. The bulls have been doing a lot of running since early March. In fact, they may have come too far too fast. This increases the chance of fatigue which is visible in the last few trading sessions. However, after witnessing such a selloff one cannot ruleout a rebound.
