The mood is up

The BSE and Nifty yesterday reacted swiftly to the news of the government saving itself (never mind if it couldnt save its soul.....cause for the financial world, the cause and effect is more important than the process of change that brings forth the result). That the crude strengthened itself in the sub 128 (now sub 125) its peer markets world over a further impetus, can be gauged from the fact that after a long time, there has been a close with an upswing rather than a decline. The volume in the market has gone up to 95,000 crores, a figure we were dreaming to achieve just a week ago. FIs also for a change, have gone ahead and invested than cash out on the mood of the market. The expected Banking reforms bill was also in part responsible for the Bankex moving up.

Looking ahead for the day, though the sentiments are up, there can be some cashing in on a positive market for those positions created in the nadir. Then there is the inflation data for the week and expected to creep up and top 12 pct. The expected quarter pct rate hike by RBI next week should also create a minor dampner, though the long awaited positive in the market should brush aside all in its path. Asia is high, global sentiments are back on track, and yes, you have the oil below 125 now as another positive, though it impacts nobody as well as it does the oil companies. BSE above 15,200 seems to be a given, so is Nifty above 4,550 (if you go by the trends of the past few days) with a small down trend as today is the F&O expiry day may also impact the markets, but then as I said yesterday, lets enjoy the mood for now.