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Monday, July 14, 2008

Tough day ahead


The market may correct further for the second straight session on inflation worries and dwindling foreign fund inflows in domestic markets. Nervousness in the market is likely to continue after the Sensex reported losses in Friday's trades. Weakness in the global indices could make the investors jittery from taking any fresh position. Among the key local indices, the Nifty could decline to 4010 or 3950 on the downside while on the upside there is a near term resistance at 4100. The Sensex has a likely support at 13350 and may face resistance at 13600.

US Indices tumbled on Friday as investors continued to worry about the credit market crisis and rise in the oil prices. While the Dow Jones slipped 128 points to close at 11101, the Nasdaq lost 19 points to close at 2239.

Except Dr Reddy & Tata Motors all the Indian floats had a lost heavily on the US bourses. Infosys tumbled 13.30%, Satyam slipped 9.17% and ICICI Bank lost 7.38% while, Rediff, Patni Computer, VSNL, HDFC Bank, Wipro and MTNL lost around 2-4% each. Among the gainers Dr Reddy rose 1.90%, while Tata Motors was up by 0.11%.

Crude oil prices in the US market gained sharply, with the Nymex light crude oil for August delivery up $3.43 to close at $145.05 a barrel. In the commodity space, the Comex gold for August series gained $18.60 to settle at $960.60 an ounce.