Friday’s minor blip deprived Indian markets of a strong weekly finish, although the broader market held its own. But, the momentum still remains in tact, with world markets cheering a surprise gain for the US manufacturing PMI. The encouraging US data came on a day when most national manufacturing PMIs registered a drop.
Risk appetite is back globally, thanks to Greece successfully averting eurozone’s first sovereign debt default. The euro is at three-week high versus the dollar. The yen is down. Gold futures tumbled to a six-week low on Friday while crude oil has recovered from recent lows.
The opening is expected to be solid as most Asian markets are up smartly. US markets will be shut today due to the Independence Day holiday.
The major short-term challenge for the NSE Nifty is in crossing the resistance of 200-DMA placed at around 5750 levels. We can see a medium-term trend reversal if the Nifty manages to surpass the critical technical barrier.
The ride from here on may witness some hiccups. Earnings will be the key driver for the month along with FII flows and monsoon.
