Pre Market Watch - March 12 2008

The Indian Market is likely to have a strong positive opening today as the cues from the global markets are in favor as well as due to announcement by US Federal Reserve to lend $200bn into the global financial system of US. On Tuesday, the Indian market closed with handsome gains led by heavy buying across the sectoral indices. Though the market opened on a disappointing note but managed to recover from the initial fall.The BSE Sensex closed higher by 199.43 points at 16,123.15 and NSE Nifty closed up by 65.5 points at 4,865.90. We expect that the market will extend its yesterday''s gains and will see the Bull Run during the trading session.

The U.S. Federal Reserve along with other central banks like European Central bank, Bank of Canada and Swiss National Bank on Tuesday announced that they will pump more liquidity into the global financial system to ease the credit crunch. For this it will lend up to 200 billion U.S. dollars of Treasury securities to cash-strapped financial institutions with term of 28 days instead of overnight under an existing program. The Fed''s latest move was seen as a direct lifeline to investment banks.

On Tuesday, the US market closed in green. The Dow Jones Industrial Average (DJIA) surged 416.66 points to close at 12,156.81 along with S&P closing higher by 47.28 points at 1,320.65 and NASDAQ closed up by 86.42 points at 2,255.76.

Today the major stock markets in Asia are trading firm. Hang Seng is trading higher by 653.36 points at 23,648.71 followed by Japan''s Nikkei trading up by 341.56 points at 12,999.84 and Taiwan Weighted trading at 8,535.10 up by 153.50 points.

The FIIs on Tuesday stood as net seller in equity. The gross equity purchased was Rs4,306.80 Crore while the gross equity sold stood at Rs5,444.40 Crore. Therefore, the net investment of equity reported was Rs1,137.60 Crore.

Today, Nifty has support at 4,840 and resistance at 5,087 and BSE Sensex has support at 16,028 and resistance at 16,989.