World is stabilizing with North Korean tensions easing a bit and so is the market. Monday saw the market going up 70 points and now its almost at 9800 levels. Today will see a flat opening around 9800 and what happens later needs to be seen. I am not seeing anything negative that needs to pull markets down as of now. Today we should see NIFTY closing above 9800. The only negative as of now is the shorting happening at 9800 put which might make 9840-9860 zone a very big resistance. Due to this the put call ratio rose to 1.12 on Monday from 1.06 seen on Friday.
Domestic cues are bit mixed with trade data showing a rise in imports which is not matching with the rise in exports. That might put some pressure on rupee and the inflation data released on Monday evening also will have some impact on the markets. July inflation spiked to 2.4% vs expected 2%. This was due to higher vegetable prices. Vegetable inflation is at 20% and Tomatoes alone have a inflation of 150%.
But there is a small cause of worry in the form of rising services inflation, which could be one off. Housing inflation went up due to HRA accounting for 7th pay commission and that is a one off. So, we really need not worry about the high inflation which is due to vegetable prices, which will correct in short term and slightly higher services inflation due to GST and 7th pay commission which is also a one off.
Petrol Prices in important cities today 16th August
1. Delhi 68.14(68.08)
2. Mumbai 77.27(77.21)
3. Kolkata 70.92(70.86)
4. Chennai 70.59(70.53)
5. Bangalore 69.19(69.12)
6. Hyderabad 72.14(72.07)