Bulls could extend Tuesday’s rally thanks to the Federal Reserve’s move to do nothing on its ultra loose monetary policy. What’s more, the US central bank offered a more optimistic assessment on the state of the labour market.
European stocks finished higher, extending gains late in the session after S&P said Greece was on track to meet its near-term budget goals.
Asian markets are mostly higher this morning. It’s a no-brainer that given the slightly optimistic global cues, the Indian market too will advance further. Whether it closes up or not is anybody’s guess. It’s best to do nothing with the stocks you hold now.
The Nifty could take a shot at 5300 in the near term, provided global markets remain firm. However, it may take a while for it to touch 5500. On the way down, strong support is now seen at 5100.
One cause for concern of late has been the low traded volume and constant selling by local funds. At the same time, volatility remains pretty low. One may see the main indices consolidate in a range of 5100-5300.
