Pre Market Watch - Feb 25 2008

The Indian Market is likely to have a positive opening as the cues from he global markets are in favor. On Friday, the market closed on a disappointing note with heavy losses across the sectoral indices. Taking the negative cues from the global markets, the domestic market opened with a heavy gap down and kept on hovering in the negative territory through out the trading session. Lack of investor''s interest in buying to book their positions led the frontline indices to close in the negative territory. Also, the weekly inflation figures that rose 4.35% for the week ended February 9, 2008 from 4.07% last week also add to the negative sentiments in the market. Also, the Union Budget 2008-09 due next week on Feb 29 led the investors to take calculative steps to book their positions. The BSE Sensex closed lower by 385.61 points at 17,349.09 and NSE Nifty closed down by 81.05 points at 5,110.75. We expect that the market may gain some grounds during the trading session.

Reliance Power''s board yesterday approved the proposal to issue bonus shares to all categories of shareholders excluding promoters in the ratio of 3 shares for every 5 shares held. This offer will reduce the cost of its share below the issue price to Rs269 per share for retail investors and Rs281 for other investors.

On Friday, the US market was closed in positive territory. The Dow Jones Industrial Average (DJIA) closed higher by 96.72 points at 12,381.02. S&P 500 index closed up by 10.58 points at 1,353.11 and NASDAQ grew by 3.57 points to close at 2,303.35.

Today, the major stock markets in Asia are trading strong. Japan''s Nikkei is trading higher by 279.89 points at 13,780.35 along with Hang Seng trading up by 100.32 points at 23,405.36 and Taiwan Weighted trading at 8.293.21 up by 184.50 points.

Today, Nifty has support at 5,096 and resistance at 5,311 and BSE Sensex has support at 17,392 and resistance at 18,139.