Daily Call - Nov 6 2008

Gravity finally caught with the Sensex on Wednesday with Reliance posting its third worst fall in history in percentage terms. The petro-chemical giant, with a weightage of 13.85% in the Sensex, acted as a mill stone around the market’s neck. The Sensex earlier rallied 42% from 7697 to 10945 in the past 7 sessions, making it the fastest fightbacks ever seen in the market’s history for a comparable period.



The US has also followed in India’s footsteps after a weak October job report and poor corporate results sent stocks tumbling. Though the market generally takes the ADC job numbers with a pinch of salt, the fact that their data (job losses) beat the expectations of economists, did the markets in. The Government’s numbers will come in on Friday. Back in India, the local punters who built position in 5 cr. shares in the last few sessions, squared up 90% of their longs, leaving the markets in a limbo. A 50% retracement of the 44% gains in the Nifty from the 2250 low means a target of 2750, which may need to be revised lower to 2631.



"Some cause happiness wherever they go; others whenever they go."
- Oscar Wilde