Daily Call - Dec 22 2008

Markets are likely to begin the week on a positive note, but we see the gains capped at around 3250 Nifty. The level also corresponds with a reading of 10400 in the Sensex, where the older index could face resistance. Read inside for the importance of this level. The cues in the morning are positive, though the US markets could not hold to their gains after Bush gave the auto companies a lifeline till Obama authors his own package for Detroit.



With Christmas on Thursday, the December derivatives will be settled on Wednesday, the 24th. The bulls are fairly comfortable perched with chances of further pushing up the settlement rate. The incoming data in the US this week is likely to be drab at the best and may not have the where with all to move our markets. We will be inward looking and watching the second phase of our stimulus package.