Markets in consolidation mode

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Markets in consolidation mode

There have been lots of results coming in and the Fed has kept rates unchanged, though there have been some changes in the nuances of the language from the Fed.

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There have been lots of results coming in and the Fed has kept rates unchanged, though there have been some changes in the nuances of the language from the Fed. A fire broke out at Reliance 's Jamnagar refinery though not with too much damage, crude is back to USD 62 and today is futures and options settlement and a day of lots of important earnings.

Markets are still consolidating, the rollovers have not been spectacular. So the market could see bouts of pressure on volatility today as well. So once we get through today, one can think without the pressure of futures and options and one can then react to earnings and what is happening globally.

The cues are not terrible; crude has gone up but the Fed meeting's directions are not too bad. Results have been good. It is a bit of a mixed bag. But the market is technically consolidating right now.

It will consolidate some more with little bit of weakish bias, as has been the case, for the last five days. So one is unsure whether Indian markets will start on a positive note because the global markets are supportive this morning and then drift down or see bouts of volatility during the course of the day.

But the consolidation is probably not over and done with, yet. One will probably see a little bit more of it so one should keep one's fingers crossed. But today is not the day when markets will make a dash to very high levels.

Asian and emerging markets:

The Asian markets were flat for the last couple of days. Nikkei is up 150 points, Straits Times is up 0.4% Taiwan is up nearly three quarters of a percent, Kospi is up 0.3% and Hang Seng is up 0.5%. The Asian cues are okay this morning. Among the other emerging markets, Russia was up 1.34% and the rest have held up as well.

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