Market is expected to trade in a narrow range initially as the impasse continues over the issue of issue of FDI in retail; opposition remains committed to raise the issue for a debate and a vote. Even dinner diplomacy has failed so far as the opposition is unwilling to digest the stand of the government. This may not be very good for UPA II as well as reforms, as those opposed to the issue include TMC, Left and the BJP itself; even key allies such as DMK refused to vote in favour of the same.
Volatility could set in later as November series equity derivatives expire this week. It’s a truncated week with the stock market closed on Wednesday on account of Guru Nanank Jayanti.
The market has held its breath in anticipation over the course of winter parliamentary session 2012. After an infructuous beginning which saw adjournment for 2 days straight, Parliament is set for a third session on today. Market closed flat with a negative bias on Friday. The Nifty failed to cross the resistance of 50 DMA which is placed at 5645 levels.
On the global front US market clocked gains as technology stocks were picked by investors. Progress on release of aid to debt-saddled Greece will be keenly watched. The discussion on the ‘Fiscal Cliff’ this week will be another major global cue for markets. The retail sales on Black Friday were up by 9% from last year which also adds to the positives. US economic reports on the housing market, manufacturing and consumer data are due this week.