Daily Market Watch

December 11, 2007

Cues for the day

The markets closed in the red after a promising start as weakness in
select global markets was witnessed. Fresh news of the slump in the US
housing sector weighed negatively on the sentiment. However, select
small- and mid-cap stocks bucked the general market trend. Though a
25 basis point cut by the Fed is more or less guaranteed, global
investors are keen to hear what the policy makers say about the outlook
of the world's biggest economy .

The markets are balanced at crucial levels and a swing on the either side
should not come as a surprise. The bulls have been struggling to break
the 20k levels for the past couple of trading sessions and have been
moving in a range. This may continue today ahead of tomorrow's Fed
announcement on interest rates. As seen on Monday, traded volume will
continue to be sluggish as most players will not want to take a chance
before the Fed meeting.