Daily call - March 26 2010

US markets gave away all the intraday gains in the second half of the trading session to close almost flat. Dow ended with just 5 point gains, off 114 points from the highest point of the day. Dow surged nearly 1% intraday as Bernake reiterated the need to keep interest rates for extended period. This added to the bullish sentiment already in play over corporate earnings and fourth consecutive decline in weekly-jobless claims. But a surge in dollar spoiled the party, sending the equities and commodities lower. Dollar index surged past 82 to scale a high of 82.17.



Our markets ended the final day of the March derivative series with flourish on the back of last hour short covering. Nifty surged 35 points to finish at 5260. For the March series, both the benchmark indices put on a whopping 8%. Technically, markets are on a strong footing. If Nifty is able to sustain above 5270 then crossing of January high of 5310 should not be a difficult task and the benchmark can go all the way to 5350. 5187 continues to be immediate support.