Daily Call - Oct 17 2008

Our markets are likely to open higher but the ensuing profit taking is likely to clip those early gains. While it is up to the banks to cut in the initial steps, their efforts could come to naught if the oil biggies , ONGC and Reliance slip and carry the whole rope down the slope. Lower base camp today is way below at the 10,000 mark in the Sensex and the domestic institutions, call them Sherpas, to come to the team’s support at lower altitudes.


While technically it is a good set up, both in the US and India, the anecdotal evidences of the credit squeeze do not allow us to take a very bullish view of things, which the charts are projecting. While the rally could last till Monday, we for one would like to book profits and not take risks for the weekend.