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Tuesday, February 23, 2010

Daily Call - Feb 23 2010


US markets broke four day rising streak to close marginally in the red. The mood was cautious ahead of congressional testimony by Fed Chairman Ben Bernanke. Bernanke is scheduled to testify on monetary policy and the economy before House and Senate committees on Wednesday and Thursday.

Our markets, after opening strong, gave away all the gains to close almost flat in yesterday’s trade. Now this is absolutely justified in light of the big events lined up during the week, viz., Railway budget tomorrow, F & O expiry of Feb. series on Thursday and Union Budget on Friday. Overall rollover at 31% is better than 24% for the comparable period last month and in line with last 3 months’ average rollover of 30%. 4805 is the immediate support, a sustained trading below which can take the benchmark to 4712, the 200 DMA. 4930-4950 remains a strong resistance zone.