Pre Market Watch - March 13 2008

The Indian Market is likely to have a negative opening today due to unfavoring cues from the global markets. On Wednesday, the market closed with marginal gains after a strong start to the trading session. The market opened with handsome gains backed by the US Federal Reserve announcement to infuse $200bn into the global financial system to ease the credit crunch and to pump more liquidity into the economy. But the market was unable to sustained at higher levels gave up all its initial gains due to poor industrial production data that slipped to 5.3% in January 2008 as compared with 11.6% in January 2007. Growth in the manufacturing sector declined to 5.9% in January 2008 as against 12.3% in January 2007.This fall led to the negative sentiments into the market, which in turn results in heavy profit booking across the counters. The BSE Sensex closed up by 4.83 points at 16,127.98 and NSE Nifty closed higher by 6.1 points at 4,872. We expect that the market may trade lower during the trading session.

On Wednesday, the US market closed in negative. The Dow Jones Industrial Average (DJIA) closed lower by 46.57 points at 12,110.24 along with S&P closed down by 11.88 points at 1,308.77 and NASDAQ fell by 11.89 points at 2,243.87.

Today the major stock markets in Asia are trading weak. Hang Seng is trading lower by 549.89 points at 22,872.87 followed by Japan''s Nikkei trading down by 261.08 points at 12,600.05 and Taiwan Weighted trading at 8,379.94 down by 55.36 points.

Indian ADRS closed in red. Satyam, Infosys and Wipro fell by (9.37%), (3.60%) and (2.21%) respectively. ICICI bank and HDFC bank dropped by (5.35%) and (3.05%) respectively.

The FIIs on Wednesday stood as net seller in equity. The gross equity purchased was Rs4,610 Crore while the gross equity sold stood at Rs5,782.40 Crore.

Therefore, the net investment of equity reported was (Rs172.40 Crore).Today, Nifty has support at 4,712 and resistance at 4,914 and BSE Sensex has support at 15,534 and resistance at 16,286.