Bulls feeling fatigued?

After pushing the Sensex and the Nifty to new all-time highs, the bulls appear to be running out of gas, and are looking for some stability in global markets as also in FII inflows. However, they may not be all that lucky going by the current anxiety and uncertainty surrounding the US economy and world credit markets. Asian markets were down yet again on Friday. The MSCI Asia Pacific Index declined 4.2% this week, its worst weekly loss since the five days to Aug. 17. European shares were mixed with amid growing doubts that a plan announced by leading central banks to ease the credit crunch will be effective. US stock futures were pointing to a lower start ahead of the release of the consumer price inflation figures. Citigroup's announcement that it will move about US $49bn of assets at an investment vehicle onto its balance sheet also weighed on the sentiment. Credit rating agency Moody's cut Citi's debt rating. As far as local factors are concerned, the FIIs were net sellers of Rs6.47bn in the cash segment in Friday's trading on a provisional basis. This could cloud the outlook a bit when trading resumes on Monday. Index heavyweights may remain under pressure while the broader market will continue to be active. Overall, the trend will continue to be sideways with all eyes on the pattern in global markets. Much of the action in the market will now take place only in January when the third quarter results will start to pour in. We will also have another Fed meeting and the RBI's policy meeting next month. Plus, of course there will be a lot of talk and conjecture over the budget as well.