Pre Session Commentary - May 2 2008

The Indian Market is likely to have a positive opening due to favoring cues from the global markets. On Wednesday, the Indian market closed in the negative territory as the profit booking took a lead in a volatile trading session. The market was unable to sustain at higher level after a firm start and fell to pare all its initial gains. A holiday yesterday due to the celebration of Maharastra Day tomorrow and the US Federal Reserve Policy meeting scheduled to be held later on the day led the investors to take calculated steps to clear up their positions. The market breadth was weak as 1397 stocks closed in red while 1296 stocks closed in green. The BSE Sensex closed lower by 91.15 points at 17,287.31 and NSE Nifty fell by 29.6 points to close at 5,165.90. We expect that the market may see some bull run during the trading session. Also, the declaration of the inflation figure by the government in the afternoon will give some further direction to the market.

The US Federal Reserve has cut the discount rate and the Fed funds rate by a quarter basis point to 2.5% and 2% respectively and this is the seventh straight cut since September 2007.

On Thursday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 189.87 points at 13,010 along with S&P 500 grew by 23.75 points to close at 1,409.34 and NASDAQ closed up by 67.91 points at 2,480.71.

Today the major stock markets in Asia are trading firm. Hang Seng is trading higher by 554.65 points at 26,310 along with Japan’s Nikkei trading up by 247.54 at 14,014.40 and Taiwan Weighted trading at 8,984.34 up by 64.42 points.

Today, Nifty has support at 5,080 and resistance at 5,298 and BSE Sensex has support at 17,342 and resistance at 17,791