The New Year has got off to a happy start and amidst all the drama surrounding the fiscal cliff situation, indices are clocking gains world over. The positive action is set to continue in our market too and the indices could see gains at start again.
Nifty Futures managed to cross the 6,000 mark. Positive momentum has set in as the Nifty achieved a breakout from the trading range of 5850-5930 closing near the 5950 levels. Global cues remain encouraging with Asian markets joining the party.
The question now is can the US Congress strike a compromise deal and prevent the fiscal cliff. The House is set to vote in a few hours on the Senate bill. Tim Geithner has says he has begun a "debt issuance suspension period" that would last through Feb. 28. In other words extraordinary measures will be taken to ensure that the debt limit does not exceed $16.394 trillion. German Chancellor Angela Merkel said the reforms ‘that we've introduced are beginning to have an impact, adding that ‘the crisis is far from over.