Daily call - Aug 26 2008

The markets could not sustain the gains logged in the first few minutes of the trade on Monday morning and eventually frittered them away by the close of trade, though the gains that you finally see are nothing but averages of the last half an hour. The 4400 level has turned out to be a pretty tough resistance to overcome. On the downside, I see support at 4248.

Infosys' proposed take over of Axon Group in the UK, may be a tad expensive, late in the day and not exactly a value buy, but it is a better investment than making cash sit idle in your balance sheet. From that sense, we like what we see. This should essentially take the pressure off the management and give them the elbow room to now look at smaller and more snugly fitting plays, something that they had been avoiding so far.