Market Today on 07.10.2008

Market is expected to open gap up on CRR cut as announced by RBI but the cautious approach will be there. Nifty may reach to 3650-3700 where again we may witness fresh bout of selling and shorting as the sentiments is badly crushed during last two bleeding sessions. As the Nifty breeches below 3600 significantly we may see it falling to a level of 3250-3270 where some support is witnessed. Sensex can reach upto 12200 from where again the selling pressure can pull back to 11800 level. We are not going to have a long laugh on the CRR cut, the smile may be temorary and will be vanished soon. Though recovery of Dowjones from a fall of more than 700 points to 300 points may show some confidence for a short interval.
Traded turnover stood at Rs 61,188.05 crore. This includes 10,355.77 crore from NSE cash segment, Rs 46,853.23 crore from NSE F&O and balance Rs 3,979.05 crore from BSE Cash segment.
3280 in Nifty and 10600 in now the next support level in nifty and Sensex respectively. If this support level is breeched again then next immediate support is at 2900 level. Market range whole day is expected to be between 3450-3680 in nifty and 11500-12000 in Sensex.

HOT NEWS
* RBI cut CRR by 50 bps to ensure liquidity in the market. It will be implemented from October11th and the cut will infuse Rs 20,000 crore into the system.
* Sebi revises P-notes norms, scraps ODI restrictions which was implemented in October 2007. Again this step was taken to ensure liquidity from FIIs
* Sensex fell below 12000 level and Nifty at below 3600 lowest ever in last two years.
Sectors to Watch-
Rate sensitive sectors like Banks and Realty may see some recovery of CRR cut, IT, Telecom and all other sector may still face pressure.
Stock to Watch-
On the upside we may see SBI, Axis Bank, ICICI bank and DLF.
On down side we may see Reliance Infra, Adlabs, JSPL, RNRL and Tata Steel.