Fresh shorts have been created and the puts are going at attractive pricing which is making many to buy.As for the FII's how they will behave is the question in most people's mind.They have a good platform to sell if they are to continue the trend and recover their money from this market.Which is still not clear in direction.Unless we see 6240 level crossed and then only we could safe say we are out of the woods, on our way for highs in a bull market.The dictum higher you go harder you fall will be the order of the day till then.With two indicators due anything can happen. IIP does not look promising, inflation is a 50:50 even if it is lower do not even dream of a rate cut or any other easements.This will not happen.
The effect of the rail budget, the figures will be not too good here too. The financial woes will continue and the fuel adjustments will be made and this would be a negative for the market as freight increase will be felt.Rest of the decisions will be cosmetic in nature.Rail related company shares are up as usual but then once the announcements are made we can see a retreat.
Tapering is a certainty and it has to be built in soon to all what this market will do.The FII's will continue to pull out till the elections are over, and if the results are a hung parliament then it is a disaster for the market.