Challenges abound for the government and the market. The political temperature has been soaring lately amid a howl of protests by the so-called civil rights activists against corruption in high places. At the same time, the weather God seems to be playing hide-and-seek.
There has been a lull in the market as well with the key indices hovering in a narrow trading band. Traded volumes have tapered off substantially, reflecting a general lack of interest among market players. This lackluster trend may persist for a while before there is any material improvement in sentiment.
Today might not be any different. The start is likely to be muted in the wake of yet another day of losses for the world markets. Wall Street extended the losing streak to six days following a bleak assessment of the US economy by Ben Bernanke. Europe continues to be haunted by the Greek situation. Asian stocks are mostly in the red as well.
One needs to exercise some caution as long as the Nifty trades below 5560. On the way down, any close below 5500 could take the Nifty towards 5430 levels.
