After last week’s big selloff (that saw the Nifty breaching 200-DMA) many would have hoped for some relief. But those prayers may not yield a desired result, not at least at the start of today’s trading session. World markets have been rattled by the sudden spurt in public unrest in Egypt against the three-decade rule of President Hosni Mubarak.
The Egyptian political turmoil could continue to cast its ugly shadow over world markets for a few days. It is tough to predict which way the cookie will crumble in Egypt. One only hopes that the uprising doesn’t spread in other parts of the Arab world.
Brace for a gap-down opening, as our market reacts to developments in Egypt. Keep an eye on global cues for any improvement in the sentiment. One should remain cautious and wait for the situation to stabilise. We expect investors to take refuge in safe havens like the dollar, yen, gold and government bonds. Crude oil has rallied above $90. The undertone may continue to be fragile for a while and a close below 5450 levels could further aggravate the selling pressure.
