Many market players appear to be taking it easy as the year draws to a close. As a result, the trend for the remainder of December is likely to be largely lackluster. But, there could be a minor-year-end “Santa Clause Rally”, provided the overseas markets are supportive. For now though we seem to have hit a speed breaker.
The Nifty failed to sustain beyond 50 DMA of 6066. It is likely to consolidate in the coming days with near-term support likely in the zone of 5900-5950. The upside appears capped with resistance likely at 6050-6100 in the near term.
October IIP and the mid-quarter RBI review are the big events to watch out for in the next few days. Globally, Eurozone debt woes will continue to unsettle investors.
Today’s start is expected to be flat to slightly negative on the back of lackluster global markets. The way the Indian market turned negative on Monday will only add to the anxiety. FIIs were net sellers and so were the domestic funds. Stick to a stock centric approach.
