Market Today on 16.10.2008

A further chop in CRR will certainly be a morale boosting but the immediate effect doesn’t look on the scene as the global market is crumbling and our Market is following the same foot step, we may see a flat opening which in turn may proceed in green but the selling pressure will soon start as the investors not willing a single oppurtunity to sell and book profit, so some fresh shorting may be on the card leading to another fresh day with same old story. Though fall may not be freely but negative biasness will certainly be there. Participation is still very poor as the turn over indicates and it may take time to recover from this trauma.
Turnover traded in markets stood at Rs 57,406.46 crore. This includes Rs 9,838.99 crore from NSE Cash segment, Rs 43,996.07 crore from NSE F&O and balance Rs 3,571.40 crore from BSE Cash segment.
Support of 3500 in Nifty was broken as expected and the next support is at 3240 and then at 2900. Similarly in Sensex 10600 and then 9870 is the next two support level. Market range whole day is expected to be between 3240-3450 in nifty and 10300-11300 in Sensex.

HOT NEWS
*RBI cuts CRR by 100 bps to 6.5% to infuse more liquidity in market. Bankers and MF welcomed the move.
*RBI may also provide 25000 Crores to lending institutions.
*L & T came out with poor number in Q2 FY09. Margin was 8.8% vs 9%.
*Rel Cap to synergise insurance, MF, Money products.
Sectors to Watch-
Banks, Realty, Capital goods may be flat with positive biasness on CRR cut, while Metal still looks weak, Infrastructure will be under pressure on L&T numbers, IT and Telecom will be on negative side on crumbling US market.
Stock to Watch-
On the upside we may see Reliance Capital, DLF, SBI, Bank of India and Hero Honda
On down side we may see JSPL, Infosys, RCOM, TCS and Tata Steel.