Daily Call - Oct 10 2008

Things look pretty gloomy this Friday morning. More gloomy than we have ever felt. None of the individual steps taken by the US , Europe or the orchestrated ones like the interest rate cuts on Wednesday taken by nations across the world seem to be working. The financial markets seem to have fallen in quick sand, in which the more efforts you make to come out, you sink more. The Dow has fallen 678 points on Thursday and is below the 9000 mark, at 8579. The Asian indices too have slumped in response.



It is useless watching the support levels in the Indices or stocks as they have no relevance in today’s market. The three month Libor and the overnight rates that Banks charge each other are continuously increasing. Unless , you see a drop in these rates, don’t touch equities with a pole. If the Sensex hits a circuit breaker, then of course it is a different thing and stocks could present short term upward potential. Our past targets for Sensex are 9200 for the Sensex and 2850 for the Nifty.