Market Today on 03.10.2008

A good recovery from lows with some positive news of aaproval of Bailout and approval of Indo-US nuke deal at US senate may act as a positive trigger for the market, though approach may be cautious and as the US market is deep down we may see a gap up opening with profit booking soon. So overall a very volatile day is expected and trend may change very quickly during the day. Trading range is expected to be high.
Turnover on Wednesday was very low today as compared to Tuesday; it stood at Rs 62868.47 crore. This includes Rs 10,786.37 crore from NSE Cash segment, Rs 47,733.85 crore from NSE F&O and balance Rs 4,348.25 crore from BSE cash segment.
3850 in Nifty and 12500 in now the important and key support level in nifty and Sensex respectively. If this support level is breeched again then next immediate support is at 3760 level. Next reisistance will be faced at 4250 in Nifty and 14400 at sensex. Market range whole day is expected to be between 3850-4050 in nifty and 12700-13400 in Sensex.

HOT NEWS
US Senate passed Bail out plan of 700 bn $, 74 voted for, 25 voted against the bailout plan by the Senate.
US senate also approved Indo-US civilian Nuke deal, 86 Senators voted for the deal, while 13 opposed it.
Experts feel that due to liquidity crunch there may not be further rate hike in October.
Crude oil cooled by 3-4% and now at about 94-95$ range.
Sectors to Watch-
On passing of Nuke deal Power and Infrastructures may gain, banks may also gain on passing of Bail out. IT, telecom and Capital goods can see some upside, FMCG can have a good day. Oil sector may face pressure. Realty may recover, Fertilizers , Cements and Sugar will remain sedative.
Stock to Watch-
On the upside we may see Axis Bank, JP Associates, Rolta, PFC, Power grid, L&T and Suzlon.
On down side we may see Cairns India, Reliance Industries, RNRL and JSPL.
To select stocks to accumulate for long term go to stock analysis posted at this blog to have a overall view on the stocks.
For intraday traders it is advised to take proper position before going for short or long market may open. Book profit in small gains.
Lastly wishing you all a happy and earning trading day.