Survivors
are winners in such kind of markets. There are no real surprises in the
US Federal Reserve’s much-hyped ‘Operation Twist’. The FOMC has
unveiled a $400bn debt-swap program to shake the US economy out of its
deep slumber. The Fed has also warned of significant downside risk to US
growth from the turmoil in the eurozone.
US
stocks slumped while gold and crude fell. Treasury yields slid to new
lows. European markets too slipped as Greece struggles to get green
light for second rescue deal. Asian indices have also taken a hit on the
chin.
On
the domestic front, there is yet another twist in the 2G scam with
reports suggesting differences in the Congress top brass. Advance tax
numbers are soft to say the least even as banks’ non-food credit growth
remains solid.
We
see a weak start in our markets in sync with the bearish trend across
global markets. Any close below 5060 on the Nifty could confirm
breakdown of current bullish pattern. Although we have recovered from
recent lows, the undertone continues to be fragile thanks to a spate of
domestic-cum-global worries.
