Pressure prevails

"Force, violence, pressure, or compulsion with a view to conformity, are both uncivilized and undemocratic". - Mahatma Gandhi. There is no dearth of pressure at the moment as far as Indian markets are concerned. Be it the stocks, bonds or the rupee. All assets are under pressure. The macro-economic scenario is not looking rosy. Inflation is likely to stay elevated even as uncertainty continues over the RBI’s call on interest rates. The Government’s borrowing calendar for H1 FY13 has sent benchmark 10-year bond yields to three-month high amid lingering worries over high fiscal deficit. The rupee is also on sticky wicket amid rising twin deficits and falling forex reserves. The confusion over GAAR tax norms and P-Notes has only dimmed the near-term prospects for our markets. Usual intraday gyrations are a given on F&O expiry day. The overall bias is likely to be negative. The opening will be down owing to weak global cues. US stocks dropped following a lower-than-expected report on durable goods orders. Asian markets are mostly in the red. European indices also finished lower ahead of yet another EU summit. Euro area members are likely to boost the financial firewall to rein in the credit crisis. The NSE Nifty managed to close above the crucial support of 200 DMA, which is currently placed at 5153 levels. The rising support line was violated on intraday basis but with the closing above 5180 levels the trendline support remains intact. The positive reaction for the Nifty would be reaffirmed with a move above 5230 levels. Till then, the critical trading range will be 5150-5230. Trend in FII flows: The FIIs were net sellers of Rs 1.48bn in the cash segment on Wednesday while the domestic institutional investors (DIIs) were net buyers of Rs 730.3mn, as per the provisional figures released by the NSE. The FIIs were net buyers of Rs 3.92bn in the F&O segment on Wednesday, according to the provisional NSE data. The foreign funds were net buyers at Rs 789mn in the cash segment on Tuesday, according to the SEBI figures. Mutual Funds were also net sellers of Rs 1.52bn on the same day. Global Data Watch today: Eurozone industrial confidence, UK Nationwide housing prices, Germany unemployment rate, Fed's Fisher speech, UK index of services, UK money supply, US GDP data, Us weekly jobless claims, Fed's Lockhart speech and Fed chairman Bernanke's speech.