Market lacks confidence

The Eurozone crisis has not abated despite the trillion Euro rescue package. And this is hurting the markets all over the world.

While the Euro is hitting new lows everyday, all markets in the world are responding nervously. India is no exception. And there have been some net FII outflow last week. Nifty is trading bellow 5000 as a result.

Eurozone turmoil will be here for some time; though the bail out package will start having effects in a short while. However, the reaction to Obama's Wall Street reform bill was completely unnecessary. The bill is very much needed and is a right thing to do. It will encourage sensible longterm investments and safeguard against reckless trading or pure fraud like Goldman Sachs. This is indeed needed for healthy markets.

So there is absolutely no reason why the markets should respond so negatively across the world. And I think this effect will quickly die down this week. However, the Eurozone debt crisis will continue to create pressure.

So probably Sensex will trade in a lower range this week with slightly positive bias.

Sectors that are looking good are banking, pharma and may be, to some extent, auto. Metals are falling in a bottomless pit. I have no idea when will that end. Energy, cement are looking volatile. Technology was very weak last week, may perform better this week. Realty, Infra, Sugar and Telecom are big no no for the investors at the moment.