Today,the bulls and bears seem to be running out of alternatives. Another lackluster start and an equally insipid day of trade could be in store for us. Fatigue seems to be taking a toll on the bulls. The key indices are attempting to break out of a range where the correction had set-in last month. The trouble is there are no great events in the near term that could trigger a big push towards new highs. Winter session of parliament begins today.
What is favouring the bulls so far is the relentless inflow of overseas money. This may continue as the dollar is unlikely to rebound sharply. But, as Christmas holidays approach there is likely to be some softening even in these flows. Local funds have already turned net sellers. Add to this, the anxiety over the shape of the economic recovery and the market could see some cooling. Valuations for many of the leading stocks are not too compelling either. In the immediate future, the market will remain sideways and listless though action would be seen in the mid-cap counters.
What is favouring the bulls so far is the relentless inflow of overseas money. This may continue as the dollar is unlikely to rebound sharply. But, as Christmas holidays approach there is likely to be some softening even in these flows. Local funds have already turned net sellers. Add to this, the anxiety over the shape of the economic recovery and the market could see some cooling. Valuations for many of the leading stocks are not too compelling either. In the immediate future, the market will remain sideways and listless though action would be seen in the mid-cap counters.
