Pre Open Market Commentary - Jan 9 2008

The Indian market today is likely to have a negative opening on the back of weak cues from global markets. Yesterday, the Indian market closed with modest gains after facing the volatility throughout the trading session. The market opened with handsome gains but was unable to sustain the momentum at higher levels and fell. But the market came off sharply towards the end of the session to close with marginal gains. The Small Caps and Mid Caps was the worst hit as they faced heavy selling across the counters The BSE Sensex closed higher by 60.68 points at 20,873.33 and NSE Nifty closed up by 8.75 points at 6,287.85. We expect that the market may remain volatile during the trading session.

On Tuesday, the US market closed in negative territory. The Dow Jones Industrial Average (DJIA) declined by 238.34 points to close at 12,589.15 along with S&P 500 index closing lower by 25.99 points at 1,390.19 and NASDAQ fell by 58.95 points to close at 2,440.51

Indian ADRS closed mixed. In technology sector, Patni computers grew by 3.26% along with Wipro by 2.11%, Satyam by 1.27% while Infosys fell by 2.37%. In banking sector, ICICI bank and HDFC bank dropped by (2.92%) and (1.61%) respectively. MTNL and VSNL slipped by (2.54%) and (1.16%) respectively.

The major stock markets in Asia are trading weak. Hang Seng is trading lower by 205.76 points at 26,907.16. Japan''s Nikkei is trading down by 108.81 points at 14,419.86. Singapore Strait Times is trading at 3,319.67 down by 18.60 points.

The FIIs on Tuesday stood as net seller both in equity as well as in debt. The gross equity purchased was Rs4,891.40 Crore and the gross debt purchased was Rs104.60 Crore while the gross equity sold stood at Rs4,972.30 Crore and gross debt sold stood at Rs242.60 Crore. Therefore, the net investment of equity reported was (Rs80.90 Crore) and net debt was (Rs138 Crore).

Today, Nifty has support at 6,162 and resistance at 6,348 and BSE Sensex has support at 20,523 and resistance at 21,091.