Market Commentary ..

There’s no real jingle on the street as yet but looks like world markets are in no mood to spoil their Christmas party. But Peace on earth remains a distant hope with terror alerts just being issued in cities like Mumbai and Ahmedabad.

Globally, the ‘ifs’ and ‘buts’ seem to be temporarily set aside; the European markets have shown pretty good resilience lately despite a spate of recent downgrades for the debt-strapped eurozone nations. Meanwhile, the US markets have been steadily pulling away amid signs of improvement in the economic landscape. Watch out for today’s revised Q3 GDP data.

In Asia, the Chinese market has recovered as the central bank has postponed a rate hike. Most Asian markets are up again today. Given this backdrop, we expect a higher start for India. With the Nifty crossing 6000, market participants are pondering whether it can sustain above this level for long. While the near term outlook is positive, immediate resistance is seen at around 6050. Traded volumes have tapered off and FII inflows have also slowed, which means sudden wild swings on low volumes could be expected.