Daily Call - Dec 19 2008

US stocks skidded again for the second consecutive day as Crude slumped below the $40 mark and possible halt of production by two of Detroite's auto makers. President elect Mr. Obama, is planning for $750 Billion package when he assumes office. In Japan, Government will ask parliament for $227 billion to buy shares to help stabilize nation's faltering stock markets. In India, government officials are busy putting together contours of second bailout package. Foreign investment limits relaxation, auto and housing loans are likely to be highlights this time around. RBI has successfully persuaded banks and most banks will start cutting Prime lending rates from Monday.


Despite weak global cues, markets are technically on a strong wicket. Now, unless markets rise to next resistance of 10500 or falter below 9700, one should buy into any weakness.