Today, we expect a cautious to positive start and another sideways trading session. There might be a bounce back if the global trend improves. That in turn could force the bears to cover their shorts. Overall, the market will remain rangebound amid uncertainty over the near-term outlook.
The bulls seem to be looking for some change and appear to have gone on an early Christmas holiday. Global stocks have struggled lately in making much headway amid some concerns about pricey valuations and the strength of the economic recovery. The markets are a bit nervous as economic rebound could spring a surprise, leading to an early exit from easy money policy. What is also making the markets jittery is a possible reversal in the trend in fund flows. For lack of other triggers, all eyes are fixed on how the dollar behaves and what happens to US interest rates.Friday’s strong jobs data has set the cats among the pigeons. It remains to be seen how upcoming data unfolds, both in the US and elsewhere. Talking of data, Indian market will react to the latest IIP on Friday.
