Daily Call - June 25 2008

Markets got into a deeper morass Tuesday as a late rally faced renewed selling, making the stocks and the indices close near their day’s lows. And late in the evening Dr. Reddy found his missing screw driver which he probably misplaced at Pune and promptly tightened the nuts. A 50 basis point hike in Repo Rate and CRR should send the banks and other interest rate sensitives tumbling.


The Nifty could test the 4000 level in the morning trade. To call that a support may be misleading. The electronic media was aghast at the likes of Hindustan Unilever losing Rs 10 in the last 40 minutes of trade. These are bearish times and stocks that do well for some time are like the sacrifical lamb that is being fed today to be cut tomorrow. There are no holy cows in the markets. The stock markets at this stage is quite like an bowling alley, where any standing pin is a target. Protect your capital. ‘Jo dar gaya, samjho bach gaya’. For the nimble footed traders, however, the morning capitulation could provide a long trading opportunity for a few minutes.