Cues from global markets are neither spectacular nor weak. Concerns over Greece prevail amid lack of cohesion in the EU. The nation now may resort to aid from the IMF. Worries over stringent new norms for Wall Street banks have ebbed even as the war of words persists between the US and China over yuan revaluation.
Wall Street had an indecisive session. The Dow rose for eighth straight day while the S&P ended in red. European stocks were weighed down by uncertainty over Greece. Asian markets are mixed.
Barring a few days, market breadth has been generally negative even on days when the main indices have advanced. This is a cause for concern as in a low-volume, shallow market there is always a chance that the market’s gain may not accurately reflect the reality. So, don’t get carried away if the Nifty breaches 5300 or the Sensex surpasses 18000.
Apply your mind and do your homework before taking a plunge into any stock, as valuations are not cheap. Though the key indices are nearing their previous 52-week highs, bulls don't appear to be entirely convinced. This leaves the market vulnerable to fresh selling.
