For the day we are expecting a cautiously optimistic start as domestic macro-economic headwinds are negating the positive vibes set off by the EU summit.
July is supposed to be a crucial month for various summer crops (kharif). A normal southwest monsoon also helps in the winter farming season (rabi) as it builds up the reservoirs across the nation. monsoon is likely to be the biggest headache in the near term, be it for the Government, farmers, consumers or companies.
Markets across the world will focus on the latest manufacturing PMI data, along with the ECB policy meeting and US jobs report. US markets will be shut on Wednesday for Independence Day.
The Nifty broke the 5080-5200 trading range after three weeks. The breakout point of 5200 could turn into a strong support. Data on IIP, inflation, corporate earnings and the RBI's month-end policy meeting will drive the sentiment all through July.
For the day, Indian markets will look out for data on merchandise exports.
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