It has been a good start to this week, yesterday the Nifty rallied quite nicely to 5430 and this morning every indication that it might just rally a bit more because global cues are supportive.
CNBC-TV18, Managing Editor, Udayan Mukherjee says, "That is what the market was expecting as it rallied in the last half and hour of trade yesterday because the Dow futures was looking strong and it has lived up to that promise."
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On the international market he says that we have a 200 point Dow rally to play around with today. While Asia has not quite picked it up to the fullest extent, at least it is supportive for us to move a bit higher on the Nifty out here as well.
"So a good start to the week looks like it might just continue for this morning at least," he adds.
Here is a verbatim transcript of his comments on CNBC-TV18. Also watch the accompanying video.
Q: Some of the preemptive gains may have been made yesterday?
A: That is true for India and for Asia, we sort of saw it coming for the US yesterday and therefore we may not rally to the same extent as the US has but start should be positive.
I don’t think there is any reason to start soft this morning. Ofcourse this is that grey zone we have been talking about, the next 30-50 points on the Nifty, so there could be some introspection around this level.
But what has changed over the last couple of days is that earnings have been digested very well in the US and I think their earnings season has been far better than you have seen out here in India. That has given the US market the conviction to move about 5% higher in the near-term which his great.
Also, we have got first signs of macro economic data with the likes of ISM manufacturing number, which came in yesterday. The commodity market has been a good fillip with dollar index declining considerably. I think a lot of comfort has been taken from the fact that the European markets have been very strong; the euro continues its pullback to 1.31 and higher.
So all of these things have given the Western and the global markets quite a bit of comfort in the near-term and we are riding on that despite what has been not a special earnings season by our own standards. We might make heavy weather of the next few points on the Nifty but I think the global set up remains quite comfortable and have improved in the last few days no question about that.
