The heat was on the bulls last week till the robust IIP numbers came to the rescue. Since then worries seem to have cooled down. In fact, the otherwise warm cities like Mumbai are beginning to feel the chill.
The start today to a truncated trading week is likely to be a positive one. Most Asian markets are trading up. Even the Chinese market has brushed aside concerns about a possible rate hike after inflation surged to a two-year high.
And talking of interest rates, the market will closely follow the policy meetings of the RBI (on Dec 16) and the US Federal Reserve (late tomorrow). Also, the latest monthly inflation figures (Dec 14) will be closely tracked.
While the market could well rebound after last week’s carnage, one should remain on guard, as FIIs have been net sellers in the past few sessions. Stick to Large Caps and “quality” mid-caps and avoid “dodgy” counters even if prices seem attractive. Complacency is the last thing one needs in an uncertain market. Wait for the market to stabilise and stay up for a few sessions before taking a decisive call.
