Today, a flat start is in the offing. US stocks hit New Year highs on Friday and the August IIP data is expected to be strong. But, Asian markets are indecisive and choppy. A holiday-curtailed week on account of elections and a Diwali weekend could mean lower volume on the domestic side. Technical and derivative indicators are pointing to some caution amid mixed prospects for the economy and corporate earnings. Since making multi-month highs, the market has been struggling to build on the seven-month rally.
The overall trend may remain volatile and uncertain in the near-term. There may be a small correction but the same could spark off buying by those who have been feeling left out for quite some time. The upside will hinge on the India Inc.’s report card, local economic data, global cues and of course fund flows. It’s a season of festivities and joy but the bulls are lacking enthusiasm. The only words of enthusiasm seem to be coming from Anil Ambani who seeks to end disputes with Mukesh Ambani.
