Market Report

It was a volatile session yesterday. Nifty(spot) almost touched 5100 and then drifted lower to end at 5062.Entire focus of the market is shifted to the EU crisis.EU stocks opened positive for the day and drifted lower when a senior German official said, ESM and EFSF cannot be run simultaneously and Eurobonds would intensify the crisis and not solve it.A poll by Reuters showed that France would lose its AAA rating within 3 months.

If on Tuesday it was Germany's factory orders which surprised the markets,yesterday it was Industrial production for the month of October.It came at 0.8% compared to the -2.7% decline in September. Bank of England and ECB meet today for the rate announcement and there is an expectation that ECB would cut rates by 25 bps.

India's Inflation data to be announced during the day.I expect it to be lower compared to the previous announcement.The drop is attributed to the roll back of fuel price hikes by the Oil marketing companies.Expect our markets to open negative tracking the Asian peers and a fall below 5040 on Nifty future will trigger further weakness.I don't think the inflation data will have any impact today on the markets.The interest decisions of both ECB and BoE will be announced after our market hours.I would advise avoiding overnight position for the day.

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