Subject: Pre - Market Report - 16.01.2008
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Markets at crossroads Indian markets reacted a day early to the citigroup news(job cuts/negative quarter and a huge write down) which hit the US markets today along with the dripping consumer confidence as per the latest data. We mentioned the other day that Dow Jones has broken critical resistance and 600-800 point dip is on cards. We see the next support levels at 12,150 below which there might be panic across the globe. We do not see that level broken easily. US Federal bank is in tight spot now with chances of US recession(as per many analysts and media hyping the recession) to cut the interest rates by atleast 50 basis points. Our take on recession is pegged at 60-40 in favour of "No Recession". Mad money pushed Reliance Power IPo craze to new levels with a 11 times over subscription and still going strong. ICICI Bank , reports a pink paper is trying to rope in a strategic investor for IVEN Medicare, fully owned subsidary of ICICI ventures.Indian Markets are at cross roads right now technically. A close below 20,200 for sensex will target 19,475 levels and then 18,600. We are not too bearish about the indian markets at this point. Vakrangee software reported excellent numbers and the stock reacted nicely. No matter we have a momentum call there. Have a great trading day. We wish A Happy and a Prosperous Pongal/Sankranthi/ 2008 Close Box BSE Sensex : 20251.09 -476NSE Nifty : 6074.25 -132.55USD : Rs.39.27Oil : $91.90