Market Synopsis

In the US, the Federal Bank seems to be indecisive at reducing its assets buying
program until it thinks that it is convinced that the US recovery is sustainable and the
jobless rate comes down to 'comfortable' levels.    Therefore, the QE3 will continue
for some more time.    Liquidity conditions will remain easy.

In China, the economic data (PMI) has disappointed the markets.    Nikkei was totally
rattled today taking the brunt of weak Chinese data and strengthening US dollar.

Locally, the strength in USD index has further aggravated the already prevailing
pressure on the INR causing the rupee to depreciate to Rs56 per USD.    The markets
reacted sharply to global developments and pressure on the INR.   Now, we have clearly
lost the upward momentum in Nifty that was existing until last week.    The spike in
the volatility index also suggests the same.

Bulls beware.     While we have another week for the month of May to get over,
the adage - 'sell off in May and go home' may as well come true this time.