We expect a higher start and a better day in office for the bulls today even as a few external irritants remain. Lack of buying from the big institutions has led to a drop on the volume front. Price erosion appears to have been done with on most counters though one cannot really expect some Hero Honda kind of run in large counters.
Easing tensions between the two Koreas coupled with strength in the US market will likely perk up the mood in India. European stocks too managed to post modest gains despite persistent concerns over sovereign debt issues. Asian markets are mostly up this morning with the Kospi pacing the advance.
The key indices will likely remain choppy and rangebound in the near term. The Nifty is likely to remain in a range of 5750-6050. Support is expected to kick in at around 5860 while resistance is likely at around 6040.
The dollar has inched higher while the euro remains subdued. Crude oil is hovering around the $90 per barrel mark. Gold and other commodities are firm as well.
