Friday 8 February 2008

Chilled bulls look for warmth - 08-02-2008

The Indian Market is likely to have a positive opening as the US market closed in green. On Tuesday, The market tumbled and closed on a deep red note. Heavy selling pressures across all the sectoral indices was witnessed after the mid session on the back of the reports by the government, which cited that the economy is likely to grow at a reasonable rate of 8.7% during the current fiscal as against 9.6% last year. The estimation of growth was slightly higher than then RBI''s projection of 8.5%, which led o the negative sentiments in the market. The Small Caps and Mid Caps also did not survive from the bloodbath as they also faced heavy selling pressures across the counters. The BSE Sensex closed lower by 612.56 points at 17,526.93 while NSE Nifty fell by 189.3 points to close at 5,133.25. We expect that the market may remain volatile during the trading session and the declaration of inflation figures by the government in the afternoon will give further direction to the market.

On Thursday, the US market closed in positive territory. The Dow Jones Industrial Average (DJIA) closed higher by 46.90 points at 12,247. S&P 500 index grew by 10.46 points to close at 1,336.91 and NASDAQ closed up by 14.28 points at 2,293.03.

Indian ADRS ended in mixed. In technology sector, Patni Comp grew by (2.36%) along with Satyam by (1.14%) and Infosys by (0.33%). In banking sector, HDFC increased by (1.73%). VSNL fell by (2.69%).

Today, From the Asian markets, Nikkei is trading lower by 104.34 points at 13,102.81. The markets in China, Hong Kong, South Korea, Indonesia, Malaysia, Singapore, Taiwan and Vietnam were closed for the Chinese Lunar New Year holidays.

The FIIs on Thursday stood as net seller in equity. The gross equity purchased was Rs2,224.70 Crore while the gross equity sold stood at Rs2,752.90 Crore. Therefore, the net investment of equity reported was (Rs528.20 Crore).

Today, Nifty has support at 5,041 and resistance at 5,243 and BSE Sensex has support at 17,134 and resistance at 18,137.