Market in a trading range but declines offer fantastic buying opportunities on the back of positive domestic cues.

Hopes of an early resolution to the Greek Crisis have resulted in a decent relief rally in nearly all global markets including India. Any resolution at this stage would at best postpone the crisis by some months as the root cause of the Greek Problem cannot be resolved without some outstanding fiscal reforms and restructuring. Hence in all likelihood this rally would get sold into sooner than later. Domestic situation, though, is far more encouraging. Not only have the monsoons picked up but the Finance Minister has finally announced the much awaited capital infusion into public sector banks. The first leg of this infusion over the next 3-6 months should revive credit growth and help turn around the economy. A very reasonable MSP increase is also extremely positive as it shows willingness of the government to take politically tough decisions.

Therefore while from a trading or short term perspective we are likely to hit a ceiling soon, declines should be used to buy with a six months or more perspective.