Daily Call - Oct 13 2008

The Dow fell 700 points on Friday and then reversed to close with just 128 points loss. With the Dow piercing the 8000 mark and bouncing back from 7882 levels, a temporary bottom seems to have been made. At the weekend, the failure of the G7 to come out with a concrete plan to support the banking sector, weighed heavily on the futures market. But the steps taken by the Eurozone countries and UK to infuse capital in their banks, seem to have improved sentiment.



It remains to be seen, what these efforts are and whether they will be able to actually stem the tide. Our take is, the markets have failed to react positively to such moves earlier, but because of the sharp declines already seen in the US on Friday and for two days in India, it may be a trading opportunity as the shorts scamper to cover. Japanese markets are closed for the Sports Day holiday.