After a continuous fall last week, in which Nifty lost close to 300 points, the question in everybody's mind is what will happen on Monday and the week that follows.
It is a difficult question indeed. And though I wouldn't bet my life on that, I do feel that there will be some greens this week.
The main contributor to the weaknesses in global stock markets last week was the Greek worries and the panic regarding the European Market and Euro's future. These worries are far from being resolved totally. But the finalisation of the bail out money funded by the European Government is definitely going to have some positive impact.
This may not restore the total market confidence , but it will at least improve it.
For India, a lot depends on how and when the FII react to it. There were some net sells last week and that can always trigger crash in Sensex or Nifty.
Last week's fall was not due to any local problem but was entirely due to the global cues. So any chance of recovery also depends on how other Asian markets and specially the US markets behave. Also, once the political situation becomes clearer in UK, that will send some more fresh positive triggers.
Meanwhile, the Rupee is at 14 months low verses US Doller and this may prove good for the tech stocks.
Sectors like Bank or Pharma, which were looking pretty good and resilient and were dragged only along with the overall market, will probably be the firsts to recover. It might still take a while for sectors like metal, energy or realty.
It is difficult to say if the recovery starts on Monday itself, but I do hope that we will see some green shoots in he course of the week.
