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Wednesday, February 10, 2010

Daily Call - Feb 10 2010


Dow surged 1.52% yesterday, posting largest single day gain Since 9th November, boosted by reports that euro zone governments have decided in principle to help heavily indebted Greece. Commodities, including Oil & Gold gained as dollar declined.

Our markets closed in green for the third consecutive sessions, mainly on the back of short covering. Huge short covering was evident on the FII side, as they bought Index futures worth 1135 cr, while Nifty OI went down by 5%. However, in the cash segment they provisionally sold worth Rs. 525 cr. IT stocks, which put up a smart show in yesterday’s trade, will be in limelight today as well after Cognizant’s better than estimated earnings and forecast. Cement was another happening sector on the back of price rise buzz and can add to yesterday’s gain in today’s trade. Congress Core Committee’s meet to discuss the recommendations of the Kirit Parikh panel will have some sentimental impact on Oil PSUs. Litmus test of Nifty will start now as after today’s rise, lot of short covering, which has helped it rise in past 3 sessions, would be over. 4850-4950 is going to be a strong resistance zone.