5:35 PM
Unknown
Markets have put up a strong performance this week, spurred by positive flows towards equity and emerging markets. Monsoon has beenokay except for one or two pockets. Domestically, food inflation has started coming down and with fiscal measures supplementing inflationcheck, there is a possibility of a pause in the RBI monetary tightening spree. Real estate stocks rallied on stronger physical market prices.Internationally, the Greece crisis has been averted which was followed by good employment data from the US, leading to healthy equitiesworld over.
Crude has again gone past the pre-IEA release levels (release of 60mn barrels last week), which is bad news for a net commodity importercountry like India. Oil and its derivatives are doing the maximum damage on the overall inflation, trade and fiscal deficit, which is negativefrom the medium term. Therefore on an overall basis, there are no near term triggers that can make the market rally substantially from hereand at the same time investors are aware of the big consumer market and the multi decade opportunity, thus keeping the meaningful selloffsunder check. The earning season has started on a healthy note. I do not expect market to do much from here except for the stockspecific movements based on earnings and their expectations.
I continue to remain positive in the consumption and healthcare space in the short to medium term and recommend to add on everydecline. Technically, market is likely to find support at 5606 & 5535 levels and would face resistance at 5700 & 5760 levels.