Daily Call - Oct 8 2008

The markets breathed easier Tuesday, with just a 100 odd points fall in the Sensex. The Nifty managed to keep its head above water. But yesterday’s relatively balanced day should be see in the light of the fact that PNs issuance was opened up and CRR had been cut. If these two things were not enough to charge the markets higher for one single day, God knows what will. The writing on the wall is clear. With each passing day, the value of the cash in hand is growing. If on January 9, Rs 21,000 could buy 1 Sensex, you can buy 1.8 Sensex now.



Markets are likely to move towards the 11K mark in the Sensex. There are no meaningful supports in the vicinity, except the round figures. Banking stocks have given renewed bearish signals. Cut your losses or book profits with a clinical bent of mind. Buy Puts in the Bank Nifty. The day the rates that bank charge each other for three months loan start declining in Europe, that may be the time to start looking for a temporary bottom in the markets.