Daily Call - Aug 8 2008

The US is in a soup, as the woes of AIG reveal and as Citi and Merrill agree to accept $17 billion charges to buy peace with regulators. There is trouble brewing next door with impeachment coming up next week for Mian Musharraf. The NSG clearance is still not in the bag and Crude is rising again after a reported fire in an Eurasian pipeline. And not to forget that Olympics get under way in China.

It might be a good idea to stay on the sidelines for another day and come back and review the matter on Monday. Though the news may be gloomy this morning, but not everything is lost. The SEBI will meet next week to revisit the PN curbs it put into place, among other agenda. Expect the PNs flows to be eased, which could be a real big trigger for the markets. The market could hang its hopes on this one. Don’t carry large positions over the weekend, unless you are doing through options.