Five days of positive action on the bourses has seen the Nifty cross the 200-DMA in intraday trade though it ended just shy of it. The Nifty could finish above the critical technical level today but any upside won’t be without hiccups. Global cues are mixed. The start is likely to be a subdued one on account of the overnight fall in the US market and weakness in the Asian benchmarks.
The encouraging part is that FII inflows – a major catalyst for Indian markets – have picked up in the past few days. Yet, beware of volatility ahead of the year-end tax adjustments and F&O expiry. On the whole, the undertone for the Indian market is likely to remain upbeat as long as the Nifty sustains above 5600. The next big obstacle is seen around 5750.
Banks and IT titans could pace the rally from here on. Keep an eye on Reliance. Telecom shares might be back in the spotlight as the CBI gets ready to file chargesheet in the 2G scam on March 31.
