Things look pretty good out here this morning. Indian markets are moving up and global markets are fine. There has been nothing in the minutes of the Fed meeting, which should spook the market this morning and crude has cooled down below USD 70.

So if one is looking for straws blowing in the wind, one will find more positive straws than negative. In any case, Indian markets are not showing too much of weakness because they clawed up to 11,700 and seem very solid going into the F&O expiry tomorrow.

The nose has been pointing up for the whole month of August and so far, there is no sign of a dip in sentiment. Sometimes midcaps fare better and at times, largecaps do well. But it looks like foreign institutions are coming back slowly into the largecap stocks again and the markets saw probably a bit of that playing out yesterday. 
 
People have been saying that this market is refusing to cool down and it probably has more upside right now, so one needs to chase that rather than get obsessed about valuations.

That seems to be the mood, one is unsure of what the markets will do next. But for the moment, if one is a trader, then he certainly has to back upside rather than downside.

Global cues:

The US markets are feeling fine enough and the Asian markets are not looking too bad. Taiwan in fact is in the midst of a nice little 2% rally, Nikkei and Straits Times are holding out and Hang Seng is up about 0.5%. Global markets seem to be feeling pretty good for the last few days, perhaps the reason is crude, it has cooled down to below USD 70.

It is good to see crude at about USD 69 after such a long time. Emerging markets were pretty stable as well, there have been no great rallies and no great slumps out there in markets like Russia, Brazil and Mexico.

But the most important event globally are the minutes of the Fed meeting, which were published. A lot of people responded to what they saw and not too many people were unhappy with what came out of those minutes.

Contd on Pg 2...