Pre Session Commentary - Feb 5 2008

The Indian Market is likely to have a negative opening due to weak cues from the global markets. On Monday, the market galloped during the trading session to close with handsome gains on the back of heavy buying across the sectoral indices scrips. The market opened on a firm note taking the favoring cues from the global markets and march forward to gains further grounds during the session. But the market lost some of its gains after the mid session as the market was unable to sustain at higher levels due to selling pressures. The Mid Caps and Small Caps also joined the rally of the benchmark indices as they also faced most buying across the counters. The BSE Sensex closed higher by 417.74 points at 18,660.32 while NSE Nifty closed up by 146.25 points at 5,463.50. We expect that the market may remain cautious during the trading session.

The government on Monday has postponed the cabinet meeting for a decision on hiking petrol and diesel prices and the cabinet will decide on this very shortly.

On Monday, the US market closed in red. The Dow Jones Industrial Average (DJIA) closed lower by 108.03 points at 12,635.16. S&P 500 index fell by 14.60 points to close at 1,380.82 and NASDAQ dropped by 30.51 points to close at 2,382.85.

Indian ADRS ended in mixed. In technology sector, Patni Comp grew by (6.17%) along with Satyam by (0.81%) and Wipro by (0.55%) while Infosys fell by (1.86%). In banking sector, HDFC bank and ICICI bank slipped by (2.98%) and (2.92%) respectively. MTNL increased by (4.88%).

The major stock markets in Asia are trading weak. Hang Seng is trading lower by 331.15 points at 24,700.93 along with Japan''s Nikkei trading down by 171.69 points at 13,688.04 and Singapore Starit Times trading at 3,055.91 down by 21.17 points.

Today, Nifty has support at 5,341 and resistance at 5,526 and BSE Sensex has support at 18,172 and resistance at 18,835.