Pre Market Watch - March 19 2008

The Indian Market is likely to have a strong positive opening today due to due to favoring cues from the global markets. On Tuesday, the Indian market pared most of its gains and closed marginally higher. Though the market opened almost on a flat note but gathered the momentum towards the mid session as the buying intensified across the counters. From the sectoral point, Capital goods and Realty scrips remained the centre of attraction as most buying was witnessed from theses baskets. The BSE Sensex closed higher by 23.97 points at 14,833.46 and NSE Nifty grew by 29.9 points to close 4533. We expect that the bulls will rule the market during the trading session as the cues from the US market of an interest rate cut by Federal Reserve will give a boost to the market.

The US Federal Reserve''s Open Market Committee yesterday has cut the federal funds rate by 75 basis point to 2.25% from 3% earlier and this sharp interest rate cut was an attempt to restore confidence to tumbling financial markets and to give a boost to the economy. The Fed has now lowered rates six times since mid-September, with the economy reeling from the credit crisis.

On Tuesday, the US market closed mixed. The Dow Jones Industrial Average (DJIA) closed higher by 420.41 points at 12,392.66. The S&P 500 (SPX) index grew by 54.14 points to close at 1,330.74 and the NASDAQ Composite (RIXF) increased by 91.25 points to close at 2,268.26.

Today the major stock markets in Asia are trading strong. Hang Seng is trading higher by 552.76 points at 21,937.37 along with Japan''s Nikkei trading up by 328.57 points at 12,292.73 and Taiwan Weighted trading at 8,227.59 up by 169.77 points.

The FIIs on Tuesday stood as net seller in equity. The gross equity purchased was Rs3,807.30 Crore while the gross equity sold stood at Rs4,439.60 Crore. Therefore, the net investment of equity reported was (Rs632.40 Crore).

Today, Nifty has support at 4,516 and resistance at 4,742 and BSE Sensex has support at 14,792 and resistance at 15,746.