Market report 08-May08

Sensex closed marginally lower lvls.. though outperforming its asian peer hangsang.. The major reason behind the weakness is bad gloabal cueues and the offcourse the reason is crude. Almost all the countries and specially developing countries are in worry of rising crude prices.. if Golman sachs are to be believed the price is still low and we can see crude settling at around 150$ mark..

though 125 plays a important resis lvls and 110 as support lvls for crude.. but as per anaylst if 125 id broken it will start trading in 125-135 region mark..

High crude prices will def effect the companies as well as govrmnt . GOvrmnt as of now might not pass the hike to consumers like us as of now ahead of elections but the oil companies are sure gonna suffer from these..

Alrdy companies like CAirn , RPL , HOEC are getting some attention from the Fund houses and if crude kep boiling like this the companies will definatley be buys at these lvls..

Markets expected to have a another weak trading day .. and though no major downfall is seen.. rumurs are there of some major correction but shorters who have shorted nned some cut which they are not getting so rumurs wuld always be there.. but we dont see any major sellof as of now..

FII are not as much active buyers in the month of april and if u see the FII figures the inflow towards equitie is just marginally in plus ..

Local funds are were buyers but they are also buying with very care and in small nos..
With low volumes liquidity is major problem in shrt term.. and we are not getting FII money as of noww.. is def a concern..
Long term we dont have worries as GDP growth is expected to be 7-8 % in this FIN ahead of inflation and 8-9 % in FY09..

Yesterday GOvmnt asked steel comp to reduce steel prices by 4000Rs ton .. and they got aggred by some conditions .. some pressure might be seen on steel comp...

watch out for...

The Government to divest residual 26.12% stake in Tata Communication ,,might show som action..
RIL and Essar Oil to bid for ONGC's unviable Kakinada refinery..

LIC to dilute it’s holding in IFCI and is awaiting cues from the government on its future strategy..
Promoters of DLF Assets, lend more than Rs11bn worth of interest-free loans to help the arm pay for properties bought from the listed company..


Nifty will take supprt at 5078.. resis at 5175 now..

have a grt day ..

daily trading call : http://forum.fnotrends.com