Angel Broking : The trend deciding level for the day is 16,808/5,062 levels. If Nifty trades above this level during the first half-an-hour of trade, then we may witness a further rally up to 17,185-17,511/5,178-5,283 levels. However, if Nifty trades below 16,808/5,062 levels for the first half-an-hour of trade then it may correct up to 16,482-16,105/4,957-4,842 levels.

Mirae Asset: We do not believe that there would be a repeat of 2008 global financial crisis in the form of a global sovereign-debt crisis and India’s macroeconomic situation will stabilise over the next 2-3 months.

India is nearing the end of the rate tightening cycle; recent global events and strong evidence of a slowdown in India may force the RBI to soften its hawkish stance as suggested by its last policy action.

At 14X FY2012E and 11.5X FY2013E ‘EPS’, the Indian market is attractively valued. We expect inflation and interest rates to peak out over the next 2-3 months and the RBI could reverse the current tightening phase after another 6-7 months of stable interest rates, once it is comfortable with the inflation trajectory.

India has hardly seen FII inflows in CY11. Asian markets (ex-Japan) are still under-performing even before the global meltdown. While the markets would exhibit volatility, we believe that at this moment, investors should not succumb to short-term news and negative flows, but should use the opportunity to buy on dips.

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