Daily Call - Oct 3 2008

The US Senate did pass the bail out package on Wednesday, as expected. But the bill now needs to be passed by the House of Representatives before President Bush can sign this. Chances of this bill being passed are brighter than last time, but never the less, uncertain. If the bill is not passed, there could be deep gashes in the indices and the credit markets will further squeeze and Gold could make a comeback.

The US markets closed in the red and the Asian ones have followed suit. The weakness is not so much a comment on the chances of the package being cleared but on the very weak economic data that showed de-growth in manufacturing and rise in unemployment claims. There is going to be severe curtailment in the Q3 GDP from the 2.8% seen in Q2 and recession is almost knocking on the doors in the US. Those who are fully invested should buy the 3800 Put for October, while those who are sitting on cash can consider buying a call in the Nift