Multiple
pressure points are at work in the markets at the current juncture. The
RBI’s shock treatment is on top of the list followed by the political
posturing in the US over how to manage the debt crisis. Mind you, the
eurozone credit problems are not over yet.
The
issue of corruption continues to haunt the markets. RBI governor D.
Subbarao (he was finance secretary then) has been named in the 2G scam
by former Telecom Secretary. The BJP is all set to dump B.S. Yeddyurappa
after the Karnataka Lokayukta submitted its report on illegal mining.
Moderation
in FII inflows is also a cause for concern. Meanwhile, SEBI’s Board
will meet today to mull a string of important issues.
The
start will be soft due to a worldwide selloff linked to the US debt
drama. Wall Street suffered badly overnight while European stocks too
were hit. Asian markets are mostly lower as well.
The
key indices will go through usual intraday gyrations associated with
F&O expiry. For the Nifty, the key level to watch will be 5500 on
the downside and 5600 on the higher side.
