Daily Call - Jan 27 2009

The markets could open higher despite a weak closing on Friday courtesy the Nikkei, which is warming up to a weak Yen and mild positive Friday close of the US markets on upbeat housing data. We will get to hear from the RBI in the afternoon. The Government has played down the expectations from this policy, so possibilities for an upward surprise does exist for the banking stocks if the RBI does wield the scissors.


The over all derivatives data as of Friday indicates that the punters have dug in their heels for a close below the 2700 level in the current settlement. The covering of the January 2700 Puts, writing of the 2700 February calls, the massive 35 points discount in the February Nifty Futures and a higher than normal roll over in the Nifty Futures indicates shorts in the system. Satyam would pop in the early trade and L&T could wilt. But once traders need to take their morning profits. Wyeth could surge on hopes of an open offer after Pfizer decided to buy Wyeth in the US. Investors must remember that buying in anticipation of an open offer is fraught with danger and delay as companies either fight it out with the regulator or buy time.