Market cues to watch out for today

Moneycontrol Bureau

Someone said clarity comes because there is confusion. This is a perfect simile to global markets. After a dismal start to October, the stocks shot up nearly 2% in the first week upon positive data from US and good cues from Europe.

Wall Street however slipped into the red in last leg of trade on Friday following the Fitch downgrade on Italy and Spain.

Europe however ended higher, hitting a five-week high after the news and better-than-expected September employment data from US that boosted hopes about a recovery in the US economy.

Asia follows suit and opened higher today. Japan and Taiwan remain shut today.

On the currency front, the Euro inched higher after leaders of Germany and France promised a new comprehensive plan to recapitalise euro zone banks by the end of the month. Angela Merkel and Nicolas Sarkozy, racing to stamp out the euro debt crisis, have given themselves three weeks to devise a plan to recapitalize banks, get Greece on the right track and fix Europe's economic governance.

Crude gained as investors bet that fuel demand may increase on signs of an economic recovery in the US and a pledge by Europe to contain its sovereign-debt crisis. Meanwhile, gold holds steady above USD 1640 levels, following a rally in commodities.

Back home, the Nifty snapped a four-session losing streak with a 135 point pullback on Friday and the Sensex too rallied 440 points.

So then, will the domestic market have a rub-off effect of the good cues and open well today?

Opinion seems divided on the domestic market. While some say that India is in a bear phase, others opine that there is one leg of downtrend to be expected before the market corrects on the upside. The long-term story still remains strong.

Check out domestic cues for today