Today, we expect a cautious to slightly higher start and another day of intra-day gyrations. Though liquidity could drive the market higher, one cannot overlook the headwinds such as sluggish loan growth, subdued tax receipts, drought, rising inflation and interest rates.The rising market may seem to be in denial mode for some time. Meanwhile, telecom companies are ringing in denials with the much anticipated mega merger of Bharti Airtel and MTN expected to take further time to materialise. BSNL and MTNL have also denied being part of the takeover consortium for Kuwait’s Zain.
Coming to the markets, looks like the momentum is favouring the bulls yet again. The Nifty is within striking distance of the 5000 mark. Some technical chartists see the Nifty touching 5200-5300 levels. But, we would like to urge caution, as the advance is bound to face bumps along the way. Large-scale fresh buying should be avoided. We wouldn’t tell you to sell off as overall the prospects appear bright but then some profit booking is always healthy for your portfolio.
