After Monday’s Mauritius blues, a recovery appears in sight. A review of the tax treaty with Mauritius appears to be on the cards though no timeline has been fixed for negotiations. Even if talks were to start, their duration and outcome is uncertain. What is also heartening to note is that there was no major sell-off from FIIs (net sales Rs5bn). The domestic funds pumped in over Rs8.6bn.
So, the start will be positive and a bounce back is a given. Global cues are also supportive. Stock indices in the US and Europe closed higher amid hope of a resolution to the Greek’s debt woes. Most Asian markets are up this morning.
The euro has recovered while the dollar index is down slightly. Nymex crude is hovering around $93 a barrel while the Brent is around US$112.
The Nifty could find resistance around 5300. It is likely to find support around 5200. Overall, the market could remain jittery in the short term. One must stick to a ‘wait-and-see’ approach and be vigilant given the high degree of volatility.
