Gains in overseas markets are likely to help local benchmark indices register gains in early trades Friday after yesterday's sharp sell off. However, caution would be the buzzword amid pre-election jitters and intra-day volatility could continue as the election phase gathers momentum. Another worrying factor has been the pace at which FIIs have been deserting Indian equities in the current month so far, which has been making local investors nervous. With inflation in the US staying high, and the American central bank hinting that it is in no hurry to cut rates, FIIs are pulling money out of emerging markets such as India. Nifty’s technical landscape also suddenly looks treacherous again as it is now way below its 21-DMA and 50-DMA with probable double top pattern on the daily charts. The line in the sand is at Nifty’s make or break support at 21710 mark.
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