Daily Call - Aug 27 2008

Banking stocks charmed the markets in the last hour of trade that enabled the Indices to wipe out their losses and close in the green. The increase in Nifty futures premium to 13 from overnight 2 does indicate that some shorts may have been covered. The rollovers are normal.

Experience tells us not to read too much into the moves of the Nifty when it is close to the settlement date. I don't think, the markets have in them to close this settlement above the 4430 mark. Also do not read too much into where it closes tomorrow, as it is no indication where the new settlement will open on Friday, as the markets will have to ford the inflation waters on Friday morning. Unless Reliance does well, market's enthusiasm may not last long. The support has now come up to 4283 and the resistance remains the same 4420.