Dalal Street opens to a positive optimism on Monday with FII inflows ready to smack this market to higher levels. US Markets are exactly at the resistance level and for now, is unable to crack the resistance despite of good news.
Asia trading weak
After a great trading week,Australia opened weak on Monday morning with Japan's Nikkei closing on account of a holiday. We expect a dull day for global markets today.
Mining Policy :
Ministerial panel apporved a mining law that seeks to cut the time taken to allocate mines and simplify a process that currently requires companies to pass through a maze of approvals from federal and state governments. The new law also proposes sharing profits between miners and local residents in an effort to reduce opposition to projects.
Industry is against the profit sharing while rest of the aspects seem to be 'OK' with them.
Mahindra & Mahindra Ltd. has reportedly signed a deal to buy aircraft parts-making machinery from Boeing Co.'s plant in Melbourne, Australia. Stock is likely to be in action in today's trade.
WSJ reports that Reliance MediaWorks Ltd. is planning to open another 60 screens in India and 20 in the U.S. this fiscal year through March 2011, quoting a senior executive.
VIX on the rise
Volatility Index (VIX) of Nifty has been rising along with Nifty. It closed at a 20-day high of 19.4. This signals caution, as fear has crept into the market.
But underlying sentiment is quite bullish and we do see any suddent surprises to the downside now. While experts are of the opinion that a 3-6 month rally is in the offing and retail investors are likely to jump in soon.