Daily Call - Aug 19 2008

Our markets will open in line with prevailing international market sentiment, which means that the 4362 support in the Nifty will be violated in early trade. That will pave the way for an eventual visit to the 4293 level, which is an imaginary support of the 50 DMA. We saw Call writing happening at the 4400 strike price for August series, which gave an early indication during the day itself of what an influential section of the market thought on the direction of the indices.

Banking stocks, which showed some traction after Thursday's sharp fall could swoon again. I expect real estate, power, metals and telecom companies to yield further ground. IT stocks may relatively outperform. On Monday we had seen the lowest volume in the cash segment in CY 2008. Today's fall may be on larger volumes.