Daily Call - Dec 26 2008

We begin the January settlement, which will see encompass the results season, with very low baggage from the past month. The OI of Rs 31460 cr is the lowest we have seen in 27 months. This tells you that the confidence among the punters is less. The plus side is derivative positions cannot be blamed for any mess that may be created in January by corporate results and there is enough room to build longs if the punters so want.



Our markets could open marginally higher on account of the 23 point premium which existed yesterday. The RPL refinery going on stream may help breath life in the counter, but may not lead to sustainable gains unless the shorts that happened Wednesday scamper for cover. The PSU Banks are relatively better placed. The absence of any major Call or Put writing will keep the boundaries of the Nifty trade quite tentative, with the initial range being 3000-2800.