Daily Call - Feb 24 2010

Dow ended down about 1% on the back of sharp dip in the consumer confidence. February Consumer confidence index declined to 46, which is a 10-month low, from a revised 56.5 in January, the expectation being 54.8. The weak data added to the cautious tone before congressional testimony from Federal Reserve Chairman Ben Bernanke on interest rate policy beginning on Wednesday.

Railway minister, Ms. Mamta Banerjee, will present her second Railway budget today. While no uptick in passenger fare is expected, a selective hike in freight rate might be done. While announcement of new trains and thrust on private sector investment will enthuse the related stocks, a concrete implementation of these plans will be crucial for translating these promises in the top line and bottom line of companies. Rollovers by and large are smooth ahaed of the F & O expiry of Feb series due tomorrow. Technically, markets are precariously poised as after not being able to cross the 4950 hump, a fall below 4805 will mean the breakdown from past four days consolidation and can take the benchmark near 4675, the bottom made on 8th Feb. On the other hand, a decisive crossover of 4930 would make the case for bulls stronger.