Yesterday’s spillover may continue

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Things look different on the last trading day of the week because the week started really bad and yesterday everything changed around. Huge amount of short covering, may be some buying as well on the margin, we saw a big 100-point rally on the Nifty.

 

It looks pretty rosy this morning as well, because the global markets are looking pretty strong. There is good news coming from the Cabinet as well; so all in all, there is nothing to disappoint or derail the journey, which began yesterday. It just looks like the market momentum may just be swinging once again this time into the green.

 

There was a ferocious pull-back yesterday; short covering is very ferocious instrument, which took the market up very sharply. One was hoping that this morning, the global factors will not poop the party, and they have not.

 

Crude is back below USD 52, all global market seems stable to rallying, so it seems like this market momentum may just continue. In any case, most of the shorts or lot of the shorts would have covered up and we had a very good technical closing as well.

 

So who is to say in the next couple of days, surprisingly the market may want to re-test or go on to re-test 4000 on the Nifty once again. It may still be a bit volatile, but at least for the morning it looks like yesterday's spill over may just continue.

 

Asian Indices

 

It is promising to be a good morning for the market once again. Nikkei is up 225 points, Kospi is up 1.3%, Taiwan is up 1.7%, Hang Seng is up 1.3%, Straits Times is up nearly 1%. So all cues are good; all lights are flashing green this morning.

 

We will look at some of the other markets. Philippines is up 1.5%, Russia up 1.7% - a pretty good going across the global markets and crude is pegged down to about USD 52, which probably helps sentiment for us if not for some of the other emerging markets.

 

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