After eking out some gains on Tuesday we expect a positive opening. Again it remains to be seen whether the indices are able to capitalise on the early pop.
Greek Prime Minister George Papandreou has survived the confidence vote. Next week will be another litmus test for him when the Greek parliament votes on the new set of tough austerity measures. The steps to cut deficit are imperative to secure the next tranche of the EU-IMF aid and a fresh lifeline. So, Greece is not completely out of the woods. Even if it manages to avoid a default, the eurozone debt problems may continue to haunt the global markets for sometime to come.
US stocks rallied, extending the recent advances ahead of Wednesday’s FOMC move. European indices too closed with solid gains. Asian markets have posted healthy gains.
Some pockets of the broader market may remain jittery about the pledged shares phenomenon.
The latest monsoon forecast is not encouraging. Monsoon session of parliament has been postponed as the UPA II debates Lokpal Bill draft and tackles corruption cases. The Nifty may face resistance around 5400 while 5200 is likely to be a key support level.
