Today, we expect a positive start, but overall trading will be choppy. The Nifty will continue to face resistance at 5180-5200. Stock-specific movements will hog the limelight. Mahindra Satyam could spurt after it has agreed to pay US$70mn to Upaid for an out of court settlement.The world and its problems will continue. While you need to keep a close watch on the developments, you need to look even more closely at your portfolio.
The bulls will hope that all the talk of a double dip recession remains just a talk though not all is hunky dory. There are a few fresh dark clouds gathering over the horizon; like the credit problems in Dubai and Greece. If that was not enough, S&P has cut its outlook on Spain to negative. UK and Japan are not doing particularly well. There are some concerns on asset bubbles in China. Inflation of course will remain a big bother for India. High unemployment and subdued consumers are hindering growth in the US.
Given this backdrop, one should remain guarded. Avoid impulsive buying.
