Pei Market Commentary ...

We expect the market to open higher today following the overnight rebound in US shares. Another catalyst could be the continuing moderation in inflation and easing of the liquidity crunch in the domestic money markets.

Some corporates may allow themselves to get emotional. But don’t try it with your holdings. There are challenging times when you need to let go of things close to you for your own survival. Such is the condition of the markets too. The bulls appear to be in a mood to add some greenery to the dry indices. Last afternoon they made their presence felt which helped the key indices recover after the BSE Sensex nearly breached the 10,000 mark. What could boost the sentiment is that the traded volume and turnover improved sharply over the previous day.

Remain on guard as the market breadth was negative. These gains and green are just moments to charge you up and give hope that all is not lost. Don’t use it to make any fresh entry.

सेन्सेक्स (10581.49) -227.63 अंक गिरकर, निफ्टी (3269.30) -69.10 अंक गिरकर, बंद....

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No plans to cut fuel prices says Petroleum Minister - reports

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Major European indices have plunged in the opening trades with FTSE Index down 5.4%, CAC Index down 5.3% and DAX Index down 5.4%

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Sell Nifty Oct Fut for intraday / positional get levels ---Join Us!

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High risk traders short NTPC Oct FUTS at Rs1?? with SL of Rs??? for target of Rs??

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Ranbaxy-Daiichi deal hits roadblocks - reports

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Reliance Power to start 1st unit of Sasan Project by December 2011

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Inflation at 11.44% - reports

India's Inflation rate was 11.44% in week ended
October 4 against expectation of 11.86%

Asian markets update: Nikkei Index down 9.9%, Hang Seng Index down 7.6% and Kospi Index down 6.2%

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Sensex : 10391.11 -418.01 || Nifty : 3205.70 -132.70

Market Alert :

Support for Nifty is at 3100. This level is crucial. Below 3100 Nifty can go up to 2800. On the upside resistance is at 3450 -3500. Traders should not initiate fresh short position today and should book profit in their short positions and wait for the rallies to go short again.

RBI has reduced CRR by 100bps.

RBI cuts CRR by 100 bps to 6.50% from Oct 11;
banks may borrow up to 50% of free Tier-I from foreign branches

Bharti Airtel ...

Bharti Airtel declined by over 6% to Rs718 touching an intra-day high of Rs752 and a low of Rs696 and recorded volumes of over 6,00,000 shares on BSE.

Bharti Airtel announced that it entered into an innovation and technology partnership with Infosys Technologies Ltd (Infosys) to deliver superior customer experience to the customers of Airtel digital TV, its Direct (DTH) TV service.

As part of its Digital Convergence Platform, Infosys will provide a suite of products including devices, application servers and interactive applications that will focus on providing an enhanced digital lifestyle to Airtel digital IV customers.

Positive & Nagative Breakouts

Positive Breakouts (BSE-200)
Union Bank India
Idea Cellular
Ranbaxy Labs
Mphasis
Sun Pharma

Negative Breakouts (BSE-200)
Patni Computer
Bharti Airtel
Bhushan Steel
Canara Bank
M&M

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Pri Market Commentary ...

Today, as on very poor international clues our markets on opening bell as yet again hell seems to have broken loose on the markets. All that talk of the world markets having placed a bottom last week suddenly appears to have been too optimistic. A fresh bout of grim economic reports in the US, UK, Europe and Japan has heightened worries that a global recession is now inevitable. And, it could be a long and painful road to recovery.

Global investors continue to shun risky assets like equity and shift to safe haven assets like government bonds and gold. At the same time, growing concerns of a crippling global recession has sent crude oil into a tailspin. Which generally is seen to be quite a positive event for India, but the slide in the rupee has to a large extent nullified that advantage. Also, investors and traders are more concerned about the incessant selloff in the stock market. Meanwhile, governments and regulators across the globe continue to look for ways to stop the bloodletting and end the logjam in credit markets.

Coming to India, the Centre, RBI and SEBI are pulling out all stops to shore up liquidity, encourage more dollar inflows and check relentless selling in the stock market. There may be some temporary relief, but the weak global markets will once again play spoilsport. Brace up for another sharp fall as markets in the US, Europe and Asia have lost anywhere between 6-10%. And, though we had a fall of more than 5% yesterday, another round of selling is expected in the wake of the global rout. We would continue to advocate caution as the key indices may fall below last week's lows. One can only pray for some sort of rebound in Asian and European markets as the day wears on. That again should give you no reason to get in as yet.

Key Results Today

Chettinad Cement,

Finolex Cables, Foseco India,

GTL, HDFC Bank,

Indo Asian Fusegear,

IndusInd Bank, Mphasis, NIIT Tech,

Peninsula Land, Rallis India and Sasken Communication.

FIIs were net sellers of Rs10.3bn

FIIs were net sellers of Rs10.3bn (provisional) in the cash segment on Wednesday while the local institutions poured in Rs6.7bn. In the F&O segment, the foreign funds were net buyers at Rs362.8mn. On Tuesday, FIIs were net sellers of just Rs1.89bn in the cash segment, taking their total outflows this year to $10.88bn.

Intra-day Trading Ideas

Considering the unprecedented carnage in the global financial markets and uncertainty over the fate of the US and other major economies, we would like to refrain from giving any intra-day trading ideas. We continue to advise caution at this stage.

Investors should stay on the sidelines till the global selloff abates and markets stabilise. One should not get carried away if there is any kind of a relief rally, as further selling is expected. Any advance in Indian stocks can only be sustained if global markets recover.

सेन्सेक्स (10809.12) -674.28 अंक गिरकर, निफ्टी (3338.40) -180.25 ) अंक गिरकर, बंद....

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European markets are trading lower with FTSE Index down 1.4%, DAX Index down 1.3% and CAC Index down 1.2%

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