Governance
(or rather lack of it) has been an issue with UPA II. The tug-of-war on
the Lokpal Bill comes in the wake of a series of scams. But, things
appear to be moving as far as talks between the Government and Team Anna
is concerned. The PM has requested Anna Hazare to end his public fast.
Lot more action is expected on this front today, including an all-party
meeting. Negotiations will continue to break the gridlock.
Coming
to the markets, the key indices may open subdued owing to weakness in
Asia. Barring China, most regional indices are in the red. The US
markets closed with strong gains though, and European stocks too
advanced.
There
is a chance of some pull-back later in the session. A short covering
led rally ahead of Thursday’s F&O expiry is not ruled out. But, the
undertone remains nervous due to a combination of global and local
problems.
A
bullish confirmation of breakout could happen if the Nifty ends above
4976; till then sustainability of any rise will be at risk. From a
short-term perspective, 4900 and 5000 are crucial levels to watch.
