Today, we expect another cautious start. The muscle of liquidity seems so far so good. However, the key indices look to be struggling after having surpassed key levels recently. The market on the whole seems to be in a consolidation mode after a strong rally. Ditto goes for global markets, where key indices are exhibiting some signs of fatigue after touching new highs for the year. Given the circumspect mood across the globe, the market may not make much headway. A rangebound and choppy kind of trend is what we expect in the near term.
Friday’s monthly jobs data in the US could prove to be a catalyst. However, any advance could soon fizzle out after a strong run. Investors are looking to the third quarter with raised expectations that could be difficult to meet. In the absence of major positive triggers, liquidity will be a crucial factor that might drive the indices a little further up. But, don’t expect a runaway rally. There is bound to be some resistance though the fall should not be a big one. Any correction should be bought into as the medium to long term outlook is upbeat
