Trouble
for the market continues amid heightening worries over the debt
distress in the US and eurozone. Officials in both these regions seem to
be struggling to reach some agreement on how best to tackle the
problem. Lingering concerns about the fragile state of the global
economy is driving investors to the relative safety of precious metal.
Gold futures have crossed $1,600; and in India the prices have hit a
record high. Silver too has appreciated lately.
We
expect another muted start as most Asian markets are in the red. A
recovery later is always possible. US stock indices closed lower again,
as did their counterparts in Europe. We might see better action in terms
of volumes and participation as the F&O expiry approaches. Also, a
few important companies will announce their Q1 results today. HDFC Bank
is chief among them.
On
the whole, the key indices are likely to trade in a 5500-5800 range in
the near term. The medium term trend remains up, as long as the Nifty
trades above 5440 on weekly closing basis.
