Indian markets are trading with extreme volatility. Yesterday is one such any trader wants to avoid unless he is on the right side. The trade was nothing short of a roller coaster. Stocks are likely to gap open to the upside on D-Street but one should clearly watch out for a Nifty level of 5200 for a break out to the upside on a closing basis.
It appears major FIIs went short in Nifty taking the feelers into consideration. The Euro aid is considered negative for Emerging markets like China, India and Brazil. As per their arguments stocks are expensive in the emerging markets.
Yesterday's IIP numbers were indeed disappointing. But one section of the analyst community argues that this will keep Mr. Subba Rao away from raising interest rates.
One should remember we are not out of woods and a trend reversal (if any) is expected today or tomorrow