Global mkts in good shape; see Nifty heading towards 6100

Market should be feeling a lot more relax today after a Friday pullback. It was a smart pullback both on the index and on the beaten down mid-caps. Things have turned around a little bit.
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Jan 28, 2013, 06.36 PM | Source: CNBC-TV18

Global mkts in good shape; see Nifty heading towards 6100

Market should be feeling a lot more relax today after a Friday pullback. It was a smart pullback both on the index and on the beaten down mid-caps. Things have turned around a little bit.

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Global mkts in good shape; see Nifty heading towards 6100

Market should be feeling a lot more relax today after a Friday pullback. It was a smart pullback both on the index and on the beaten down mid-caps. Things have turned around a little bit.

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Udayan Mukherjee (more)

Consulting Editor, CNBC-TV18 |

Market should be feeling a lot more relaxed today after a Friday pullback. It was a smart pullback both on the index and on the beaten down mid-caps. Things have turned around a little bit. This week is the big one for the market because the eagerly awaited monetary policy is scheduled for tomorrow.

Just the last 10 days of this earning season are left and lots of interesting mid-cap companies will be reporting numbers today. It looks like the market is in for five interesting days of trading, said Udayan Mukherjee, managing editor, CNBC-TV18.

Friday was better than the rest of the week. Our market needed that comeback on Friday because markets were languishing. The Nifty was clearly under threat of breaking below that 6,000 level. Considerable damage had been done on the mid-cap universe. So, it was good to see that bounce back in the market breadth, the advance decline pullback. The Nifty also got back within shouting distance of 6,100 again.

I believe that today we will be knocking on the doors of 6,100 yet again contrary to expectations on last Wednesday-Thursday. So, the global markets have held up remarkably well. The S&P500 is above that crucial 1,500 level. Our market is in a good place this morning. The mood should certainly be better. But we need to see more evidence of a pullback. Friday, should not be just a one-off kind of a pullback on short covering after which the market resumes the mid-cap carnage that it saw last week.

We are into the last 10 days of this earnings season, so this week we will see lot of very important mid-caps reporting their numbers. In any case, this has been a mid-cap kind of market over the last five or six sessions. The focus has been far less on the Nifty than on individual stocks. Crompton Greaves, Lupin, Titan, Tata Global, Jet Airways, Balrampur Chini, and Arvind Mills - the list of very important mid-caps reporting numbers is long. So, one will see a lot of stock-specific action over the next five days.

From a macro perspective surely, the policy tomorrow is going to be important. But the street is far more receptive to the idea of 25 bps than 50 bps as it might have been the case even a couple of weeks back. It may not jar too much if the Reserve Bank of India (RBI) were just to give a 25 bps and sound not too hawkish about prospects going forward from here. If 50 bps come, I think the Nifty will probably take out 6,100. So tomorrow is probably not the policy, which becomes a nonevent though there has been intense speculation about what it will hold. But my guess is the market will do well to go in thinking 25 bps and 50 bps.

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