Daily Call - June 26 2008

As expected nothing came out of the Left-UPA panel meet on the Nuclear deal issue as they went through the motions of a talk and decided to meet later. The bright side of this stupid impasse is that the markets can relax and let go of their brace mode, which they were in. In the US, Bernanke and company decided to keep rates unchanged at 2% and shifted their concern from growth to inflation, but sounded less hawkish then what the markets had expected, prompting a sharp rally post meet in the Dow, which was quickly sold into, making the Dow end the day with just 4 points in the green.


We have the quadruple-witching day today. Bulk of the action which usually happens on the settlement day, seem to have taken place yesterday. A 38% retracement of the current fall that we have seen in the past six sessions in the Nifty, comes at 4325, which should act as a reistance. The call-put action indicates that the settlement should not be way out of the current range. How the markets close today may be of no relevance to predict how they will behave on Friday