Today, looks like the adventurous bulls could close a volatile week on a high, thanks largely to firm global cues. The US market ignored a surprising rise in weekly jobless claims and welcomed data on manufacturing and economic indicators. Commodity linked shares boosted European stocks. Asian markets too are mostly up, barring the Nikkei. We are in for a higher start, which should last till the close of the day, unless there is any untoward accident in world markets.
Back home, the monsoon seems to be making a gradual comeback after an unusually long hiatus. If the raingods remain generous for say a month or so, the grim agri picture could improve a little. Even if this does happen, farm output will be lower. Inflation will start spiking in a couple of months while interest rates could head north next year.
Basically, we will continue to see this sideways trend for a few more days. The Nifty could oscillate between 4350 and 4550. One will have to keep one’s ears to the ground and eyes wide open as the market’s direction will hinge on daily news and events.
