Today we expect a flat to slightly higher start. Asian markets are mostly in the green. US stocks managed to overcome a grim jobs report. Volatility will persist.The quarterly numbers haven’t inspired as much confidence as one would have expected them to. Investment led growth is yet to materialise. Credit growth remains subdued. Inflation has started inching higher. Interest rates have bottomed out. The bulls may have escaped a big scare but the danger is still lurking. The threat of a fresh correction still looms given the uncertainty over the shape of recovery.
A measured ‘exit’ from the emergency stimulus measures is likely over the next few months. The market could again get withdrawal symptoms when the ‘exit’ begins.Immediate support is placed at around 4700. Below that support may kick in at 4640-4650. Resistance is expected around 4850-4900. Overall, near-term trading range is seen between 4500-5000.
