We expect a flat start today after Monday’s advance. Overall, the market will be choppy and rangebound. Technically, 5300 continues to be a major hurdle for the Nifty. If it is breached convincingly, the Nifty could head for 5400-5420. Support is likely at 5180-5200. A spate of stock-specific action will persist so avoid taking a broader view for now. For some time, the market may seem to go nowhere but individual stocks could have their moments of glory.
Markets have never been known to be rational. But there is some relief for households and corporates alike as sugar prices are getting rational. It remains to be seen if the Government manages to lower prices of other essential commodities as well. But, the relief may turn out to be temporary as ad-hoc measures can have only a limited impact on inflation. In any case, one should brace for a gradual and calibrated rise in interest rates.Asian shares are flat in a quiet trade, as investors await key earnings from across the globe. Gains in commodity-sector firms, helped European stocks end higher. US markets were shut due to a holiday.
