Going by Friday's session, when the bulls managed to shrug off weak global indicators, chances of a sharp correction appear quite slim. In addition, FII inflows in the past couple of sessions have improved. This should be seen as good news as there were concerns that the P-Note restrictions could cap fresh investments from overseas funds. The slowdown in FII inflows but proved to be short lived. If the positive trend in FII inflows continues, the market will hold up even in the face of a savage fall across global markets.
In addition, the renewed warmth in relations between the Government and the Left would also add to the optimism. However, one should be careful as the advance from late August has been pretty shift. As a result, some consolidation is bound to happen. On the whole, things do not look that bad. One could resume buying at lower levels but the same should not be too aggressive. The fact that the Indian market did not fall quite as sharply as some of the regional peers augers well for the bulls. IT and cement counters may be in flavor for the coming week.
In addition, the renewed warmth in relations between the Government and the Left would also add to the optimism. However, one should be careful as the advance from late August has been pretty shift. As a result, some consolidation is bound to happen. On the whole, things do not look that bad. One could resume buying at lower levels but the same should not be too aggressive. The fact that the Indian market did not fall quite as sharply as some of the regional peers augers well for the bulls. IT and cement counters may be in flavor for the coming week.
