Pre Market Watch

Indian market is likely to have a gap down opening for the day, as the global markets are giving very weak cues. Further the worries about lack of participation of foreign funds may have little negative impact on the market. On Thursday, the benchmark index Sensex ended up with the loss of 113.64 points at 19,724.35, whereas Nifty also closed with a loss of 34.20 points to close at 5,866.45. We expect that the market may trade with occasional volatility & recovery can be seen at the later stages.

On Thursday, the US markets ended lower as the Dow Jones Industrial Average (DJIA) ended with a loss of 362.14 points to close at 13,567.87. Further the NASDAQ Composite & S&P 500 (SPX) index also ended down by 64.29 points & 40.94 points at 2,794.83 & 1,508.44 respectively.

Indian ADRs ended in red territory. In telecommunication sector, VSNL & MTNL plunged by (7.50%) & (6.18%) respectively. Further in Banking sector ICICI bank & HDFC bank dropped by (4.19%) & (3.22%). In Technology sector, Patni Computers decreased by (9.05%), along with Wipro, Infosys & Satyam by (1.28%), (2.00%) & (1.68%) respectively.

The major stock markets in Asia are also trading weak. Hang Seng is trading in deep red with a loss of 798.36 points at 30,694.52. Along with this, Japan''s Nikkei is trading with a loss of 289.13 points to trade at 16,581.27. Singapore''s Straits Times index is also trading lower by 66.23 points at 3,737.33, whereas Seoul Composite lost 14.92 points to trade at 2,048.22.

Yesterday, the FIIs performed mixed activity as the gross equity purchased was Rs.5442.20 (in crores), and the gross debt purchased was Rs.17.00 (in crores) as against the gross equity sold was Rs.5214.20 (in crores) and the gross debt sold was Rs.55.5 (in crores). The net investment of equity was Rs.228.00 (in crores) and the net debt investment was Rs.-38.5 (in crores).

Today, Nifty has support at 5,650 and resistance at 5935 and BSE Sensex has support at 19,224 and resistance at 19,910.