Daily Call - Sep 2 2008

The markets are likely to heave a sigh of relief that Gustav slowed down to a category 2 hurricane before making landfall. The topping of the levees at some places, amply demonstrated, what could have happened if Gustav had not weakened. Crude nose dived to take support at its 200 DMA at around $109. This should help the markets open higher this morning.

We are saddened that Dr Reddy has not got an extension. But that should gladden the hearts of the interest rate sensitive bulls, who are large in number. Two of the three events that could have been negative have turned positive for the markets, imparting it a positive bias. The put writing at 4300 has taken the support from 4200 to 4300. Some profit taking could be round the corner in the afternoon on account of Ganesh Chaturthi holiday tomorrow.