After a scary fall of last week, the Indian market has bounced back, and how! In just two trading sessions, the Nifty has rallied a whopping 250 points. We expect another positive start but there may be some softening later, as global markets seem to be taking a pause.
Immediate projection of a ‘falling wedge’ is placed at 5650 in the near term and 5350 will act as a strong support for the Nifty. The 200-DMS is placed at 5630.
Some moderation in inflation has offset another bad set of IIP data. End to the civil unrest in Egypt coupled with a drop in oil prices and the continuous strength in the US market have also aided the sentiment.
On the political front there seems to be some relief as well. The Government is likely to announce a JPC probe into the mega 2G scam shortly. As a result, the Budget session may not suffer the same fate as the winter one did.
Curtains will soon come down on yet another earnings season. Tata Steel will declare its Q3 results today.
