Today we expect a ‘flat-to-soft’ start. Things might look up later if some short covering takes place or if world markets resume their ascent. We don’t see a big crack as yet but some more softening is not ruled out. Technically, the Nifty could take support at 4910 and resistance is likely around 5060. Sugar stocks will remain in limelight due to farmers’ protest.
Sound reasons seem to be missing from the market. In face skepticism over the strength of the economic recovery and some pessimism over the future prospects is preventing a strong advance for some time. Like in October, when the Sensex and the Nifty lost about 7%, there appears to be another period of consolidation. Though the October losses have been recouped this month, the key indices are struggling to re-test the October highs. The sideways trend may continue for a while and much will hinge on how the global markets behave. The dollar movement is also being closely watched.
