Today, absence of any significant positive triggers and a growing feeling that the celebration was premature has put some brakes. The non-stop rally since the first week of March didn’t give time for many to get in. That rally has come under some threat of late, largely due to weak global cues.FIIs too seem to be smarting from last year’s experience by locking in some gains. Ditto could be said of other categories of investors. The economic recovery would be in fits and starts. So no harm in booking profits when stocks reach your long-term targets in the short term.
Global markets meanwhile continue to struggle. This means we may again fall in line with overseas cues and open flat. While one should be ready for some reversals after a spectacular run, there is some whisper of another fast and ferocious run by the bulls before expiry. Talks are of perhaps another 200 points upside for the Nifty.
Ideally, what is needed is a strong incremental evidence of rebound, both in economic data and corporate earnings. But then the market is known for running ahead of fundamentals!
