After
yet another resilient show, market participants will be tested this
week as the RBI has left the door open for further tightening. The start
today looks a bit soft due to weakness across Asian markets. Japanese
market is shut for a holiday. US stock futures are in the red.
Talks
between Europe’s finance ministers on how to resolve the escalating
debt crisis in the region were inconclusive. Gold and the dollar are up
while the euro has weakened. Europe has warned Greece that further aid
will be kept on hold unless it meets its budget targets.
So,
the uncertainty over the worsening eurozone situation and US’ efforts
to slash its mounting debt may continue to haunt world markets.
Investors will also await the outcome of the Federal Reserve's two-day
meeting on Wednesday.
No
major economic reports are due this week as far as India is concerned.
The next big trigger could come from the corporate earnings. Till then
the indices are likely to be sideways and will mostly dance to the tune
of overseas events. We would continue to urge caution as the Nifty has
struggled to move above 5177.
