It
could well be billed as a big day for the market. Key events on the
radar of the market players today include: Infosys results, May IIP
data, EGoM on fuel prices and of course the much anticipated Cabinet
reshuffle.
Plenty
of developments are going around the world as well. The Bank of Japan
will hold its policy meet. Eurogroup finance ministers will meet in
Brussels to deliberate on the ongoing debt problems from Greece to
Italy. In the US, there is still no sign of a final deal on the debt
ceiling.
Unfortunately,
the start is set to be gap-down amid a sea of red across world markets.
The dollar has strengthened while the euro has tumbled. Global
participants have turned risk averse on fear that Italy could be the
next domino to fall in Europe.
Given the huge event risk and weak global backdrop, it will be prudent to be cautious and let the dust settle down a bit.
The
short-term uptrend is in danger of fizzling out after the Nifty
violated key support of 5610 intraday. One big positive is that FIIs are
still pumping money into India.
