After
a tumultuous week and a nervous weekend, market participants can at
least look forward to a stable opening. The US and European stock
indices managed to claw their way back on Friday. But on the week
markets across the globe were down substantially. Asian markets too seem
to be struggling to stage a meaningful comeback. Hence, one must be
careful and guarded in approaching the markets in the near term.
The
problems confronting Greece are yet to be sorted out. Eurozone members
are bickering over possible options to contain any adverse fallout on
the region. Global leaders gathered in the US for World Bank and IMF
meetings failed to calm the markets. It now remains to be seen whether
leaders in the US and Europe will set aside political differences to
prevent another recession in their backyard.
Back
home, the UPA II continues to be under pressure owing to the 2G scam. A
sliding rupee is adding to the list of troubles. We continue to urge
caution given the uncertain backdrop. Any close below 4830 on the Nifty
could trigger fresh selling.
