Markets will open gap up as all the Asian indices are almost 1 to 1.5 % up at the moment. Our market these days behave in complete tandem with what the global emerging markets do.
Also we saw some kind of recovery happening in Dow and Nasdaq yesterday as both the indices were up almost by 0.5 %.
Also in the figures released yesterday, our economy grew at 9.55% on QoQ basis. This will definitely give cheer to our markets and will boost the sentiment to some extent.
Another silver lining is that FII were net buyers in Cash as well as F&O segment on May 31. Also F&O statistics shows that currently market is in "oversold" condition and stage is all set for bounce back to happen today.
This rally may push Nifty to 3150 levels in the early morning trade.
FOMC meet minutes gives an clear indication that atleast a 25 bps hike in interest rate can't be ruled out at this moment. FOMC believes that inflation in under control but it is still at higher band of what it should be. Since we have breached so many crucial technical levels in the course of this correction, I believe that pain is not yet fully out of the system and we may test lower levels going forward. Since the potential upside is limited from these levels, as people are currently sitting on huge losses and there will be so many people who would like to exit, it is better to wait and watch for some days before making any directional call on the market.
Quote of the day: Bull market has no top, bear market has no bottom. -- Unknown
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