Pre Market Commetary ..

Today, we expect a slightly lower opening, which should not be as bad as the one witnessed by the US and Europe. After yesterday's collapse, there might be a mild recovery.Though most market players in India are currently focused on the Railway Budget and Union Budget one must not forget we are still in the midst of a global economic crisis. Even the Economic Survey has based its FY10 GDP growth projection on the global recovery, especially in the US.

The NSE Nifty could find strong option related support at 4200 levels. The Union Budget is just a couple of days away and further course of action should be decided post that only. Volatility will prevail ahead of Union Budget. Railway-related stocks may swing as Mamata Banerjee unveils the Railway Budget today. High time you get out of those counters today. Stocks which could be in action would be BEML, Titagarh Wagon, Kalindee Rail Nirman, Texmaco and Kernex Micro.

Monsoon seems to have picked up momentum after a delayed start. But, will economic growth too follow suit is anybody’s guess. Passage of a few crucial reforms is critical for India to return to its high growth path of 7-8%. The Economic Survey has made all the right prescriptions. The million dollar question is whether the UPA can muster enough gumption to follow the same.

However, the Asian markets are down but not as much as their western counterparts. Wall Street will enjoy an extended Independence Day weekend with US markets shut today.