Today,we expect a positive start for Indian stocks on healthy global cues. But, don’t take undue risks, as the near-term outlook remains cloudy. A big worry is the continuous selling by FIIs, though local funds remain bullish. Budget could prove to be an important catalyst apart from of course the global events.
For now though, risk appetite seems to be back, at least temporarily. The dollar index slid below 80 and the euro had its biggest gain against the greenback in two months. Gold and crude oil also advanced. The Dow Jones had its biggest gain since Jan. 4. Stocks in Europe, however, missed out on much of the Greek-related rally. Asian markets are mostly higher.
Technically, the Nifty has short-term support at 4700 while resistance is likely at around 4900. It has to decisively surpass 4950 if it is to reclaim the coveted 5000 level. The Nifty has a strong support at 200 DMA i.e. 4640 in case of another major selloff. Meanwhile, Federal Reserve chairman Ben S. Bernanke is expected to release testimony on his vision for easing the US away from its current ultra-loose monetary policy. And while Bernanke may talk a lot about exit, he is going to make it clear that the central bank is also not in a hurry to take away the punching ball.
