Pre Market Watch - Jan 17 2008

The Indian Market is likely to have a positive opening as the Asian market is trading higher. Yesterday, the Indian market closed in the negative territory on the back of heavy profit booking across the counters. The market opened in red backed by negative cues from the global markets and drifts down further since the opening bell. The market faced the bloodbath due to heavy selling pressures. But buying at the lower levels led the market to cover up some of its lost points towards the end of the session. The BSE Sensex closed lower by 382.98 points at 19,868.11 and NSE Nifty fell by 138.5 points to close at 5,935.75. We expect that the market may remain volatile during the trading session.

On Wednesday, the US market closed in negative. The Dow Jones Industrial Average (DJIA) closed lower by 34.95 points at 12,466.16. S&P 500 index slipped by 7.75 points to close at 1,373.20 and NASDAQ dropped by 23 points to close at 2,394.59Indian ADRS closed in negative. In technology sector, Satyam fell by (5.41%) along with Patni computers (5.36%), Wipro (2.64%) and Infosys (1.15%). In banking sector, HDFC bank slipped by (5.24%) while ICICI bank grew by 0.33%. VSNL and MTNL dropped by (7.88%) and (6.70%) respectively. Sterlite industries decreased by (6.71%).

The major stock markets in Asia are trading firm. Hang Seng is trading higher by 400.48 points at 24,851.33 along with Japan''s Nikkei is trading up by 152.44 points at 13,656.95 and Seoul Composite is trading at 1,712.96 up by 7.99 points.

On Wednesday, the FIIs stood as net buyer both in equity and debt. The gross equity purchased was Rs5,209.90 Crore and the gross debt purchased was Rs249.10 Crore while the gross equity sold stood at Rs4,984.10 Crore and gross debt sold stood at Rs45.10 Crore. Therefore, the net investment of equity reported was Rs225.80 Crore and net debt was Rs204 Crore.

Today, Nifty has support at 5,842 and resistance at 6,027 and BSE Sensex has support at 19,521 and resistance at 20,189