Pre Session Commentary - Feb 22 2008

The Indian Market is likely to have a negative opening due to unfavoring cues from the global markets. On Thursday, the market made a smart recovery towards the final trading hours of the session to close with handsome gains. The market opened on a strong note by taking the favoring cues from the global markets and rallied across the sectoral indices. Due to high volatility, the market dipped into the negative territory by paring all its initial gains but managed to made a good recovery at the end on the back of heavy buying across the counters. The Small Cap and Middle Cap also registered good gains as the investors also showed heir confidence in buying from these baskets. From the sectoral front, the IT stocks and Metal stocks remained the centre of attraction as most buying was seen from these counters. The BSE Sensex closed higher by 117.08 points at 17,734.68 and NSE Nifty closed up by 37.35 points at 5,191.80. We expect that the market may remain cautious during the trading session. The inflation figures which is due today, will give further directions to the market

On Thursday, the US market was closed in red. The Dow Jones Industrial Average (DJIA) closed lower by 142.96 points at 12,284.30. S&P 500 index fell by 17.50 points to close at 1,342.53 and NASDAQ decreased by 27.32 points to close at 2,299.78.

Indian ADRs closed mixed. In technology sector, Wipro and Infosys grew by 1.38% and 1.12% respectively while Satyam fell by 1.14%. In banking sector, HDFC bank and ICICI bank dropped by (3.17%) and (2.14%) respectively.

Today, the major stock markets in Asia are trading weak. Hang Seng is trading lower by 456.27 points at 23,166.73 along with Japan''s Nikkei trading down by 264.34 points at 13,423.94 and Taiwan weighted trading at 8,053.27 down by 32.66 points. Singapore Strait Times is trading down by 28.10 points at 3,026.71.

Today, Nifty has support at 5,067 and resistance at 5,245 and BSE Sensex has support at 17,163 and resistance at 17,926.