Today, we expect a steady start which might pick up if the Nifty crosses 5140. Some resistance is expected near 5200 and support will kick in at around 5000.Risk appetite seems to be alive and kicking despite a brief scare that was sparked by the Dubai debt crisis. Experts feel the crisis over the Dubai World debt default is not as serious as feared initially and will be mostly contained. For India, the big sentiment booster has come in the form of the Q2 GDP growth data. Monthly auto sales have only reinforced a growing view that the Indian economy is in a pink of health.
However, not all is hunky dory. Some concerns remain over high fiscal deficit, spiraling inflation, anemic loan growth, shrinking exports and subdued tax collections. Valuations too are not cheap. Loose monetary policy could soon be history and the fiscal stimulus too might be gradually withdrawn. Global recovery may also stall in the absence of emergency fire fighting steps.
In short, one must tread cautiously though the bias is positive.
