Weak US Inflation data stoked a rally in the US Markets yesterday and is likely to propel a rally in Asian marktes today including India.D-Street is likely to open up continuing the last 5 day winning streak today. Midcaps continued to spring in major surprise with ADAG stocks jumping all over the place with RNRL leading from the front, taking over the baton from Reliance Communications.Our bearish view on Nifty has taken a beating but we are still not comfortable given the current economic situation. Inflation is a major concern while Euro crisis is not over yet according to us.
We would wait for 5250 for Nifty on a closing basis before taking a bullish stance. Things are definitely uncertain still though many brokerage houses changed their stance suddenly. Keep a catious view on the market but as we always said a long term investor can continue to hold and add on any declines.
Nifty 5300 is what most of the analysts are pegging the resistance. Better safe than sorry.