Today, we expect another good start on the back of healthy global trend. F&O indicators have also turned bullish. Technically, there could be some resistance at 4950-5000 and beyond that at around 5150-5200. Better enjoy the ride as long as it lasts. As long as the liquidity tap is running, risky assets will be in demand. Don’t forget the risk part though. After a brief hiccup, the bulls seem to be in complete control again. The current momentum is likely to prevail in the near term.
The dollar continues to slide amid growing talk of its fate as the world’s reserve currency. And, when the dollar is dumped gold seems to benefit the most. The precious metal appears to be on a record-breaking spree. Other commodities too have gained, though concerns are mounting over asset bubbles. G20 has reiterated the pledge to keep emergency stimulus in place till recovery is fully secured. But, in India the RBI last month started withdrawing some of the accommodation. The PM says fiscal stimulus will also be withdrawn gradually.
