VIEW POINT: ALL EYES ON IIP NOW
The markets are likely to edge lower in the morning trade as some profit taking could creep-in as the package for the US Auto companies is still hanging fire in the Senate. The slide in the Dollar, however, will keep the embers hot for the commodities, though the related stocks may see some profit booking. But keep an eye on news channels, for that Auto package, which may be passed later today.
The markets are likely to watch with keen interest the reading of the Index of Industrial Production (IIP), which should come around 12 noon. The street expects a reading of 2% growth for the month of October. A lower growth would be disappointing. But going by the fact that the markets are showing very strong resilience, there could be a scenario, in which the markets may initially fall and then bounce back with a vengeance. In case of such an eventuality, it will mean that this rally has legs. But do not take that risk without stop losses. Things do not change materially unless we see a close below 2750.
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