The
resilience shown by world equities lately appears to be under some
threat. Greece is struggling to convince EU and IMF for the second
tranche of financial aid. German Chancellor Angela Merkel’s party has
suffered another electoral defeat. S&P has cut Italy’s debt rating
with a negative outlook.
Across
the Atlantic, President Obama is trying hard to get the Congress to
pass his version of a deficit-cutting measure. A protracted political
battle is not ruled out ahead of next year’s Presidential polls.
All
eyes will be on a two-day FOMC meet, where the Fed policymakers could
well unveil another policy ‘twist’ in a bid to boost growth.
We
see a timid start as Asian markets are mixed. US stocks did recover
from sessions lows but European indices slid. Any material recovery for
Indian indices hinges on positive developments overseas. We expect a
grinding session owing to offshore uncertainties.
The
Nifty is stuck in a band of 4900-5100. Near-term support is likely
between 4900 and 5000 while resistance could kick in between 5100 and
5200
