Morning Market View 26th July 2011

Market aided by strong buying from overseas investors and some policy initiatives taken by the government is slowly inching towards the level from where profit booking usually brings the indices back to the trading range. This time it is happening very close to the credit policy announcements. If the consensus is that this is either the last or one of the final upward revisions in interest rates then markets can head higher from here in the near term. Underownership and pessimism amongst the investor community in large may also help in pushing the indices higher as money waiting on the sidelines will rush in once the breakout becomes evident.