It is time for the bulls to change their way a bit, at least for today, as heightened sovereign debt troubles in Europe has sent global markets in a bit of a tizzy. Risk appetite has taken a beating amid concerns that the financial mess in "PIGGS" could spread to more European nations and may hurt the global economic recovery. The Goldman Sachs fraud case and worries about more tightening in China are among the other pressure points.
To add to the volatility we have the F&O expiry on Thursday. The Fed will keep rates steady later today. Still, the markets will be eager to know if there is any change in its language. Given the weak global backdrop, the Indian market too will witness a gap-down opening. Whether we recover from this global jolt will hinge on how European markets open.
One will also have to keep a close tab on the latest developments in the region. The Nifty has a good support at 5200 but may fall below it if there is any further deterioration in the global sentiment. It is time to be a little guarded and wait for the turbulence to get over. A selective and careful approach is the need of the hour.
