Market Today on 6th Oct 2008

Market may start with a gap down by 20-30 points in Nifty taking global cues but soon expected to recover as 3780 is a good support for Nifty and is expected to bounce back from there. Bail out plan passed from house of representatives and this may act as a postive trigger to lift the market up. Heavy weights holds the key as Mid caps and Small caps may still face some selling. Asian markets are expected to open in positive and if it happens our market may see some good rally at the end as it is almost at its lowest level but if 3780 is breeched significantly then we may see it falling upto 3715 where it may find another support.
Turnover on Friday stood at Rs 61653.54 crore. This includes Rs 11880.63 crore from NSE Cash segment, Rs 44983.07 crore from NSE F&O and balance Rs 4789.84 crore from BSE cash segment.
3780 in Nifty and 12400 in now the next support level in nifty and Sensex respectively. If this support level is breeched again then next immediate support is at 3710 level. Next reisistance will be faced at 4250 in Nifty and 14400 at sensex. Market range whole day is expected to be between 3750-4000 in nifty and 12350-13000 in Sensex.

HOT NEWS
Inflation cooled to sub 12 level and came at 11.99 vs 12.14.
The House of Representatives has approved the revised USD 700 billion bailout package. The US House voted 263-171 to approve of the financial rescue bill.
Tata finally exit Singur but promises to come with Nano in time.
Diiachii finally buying Ranbaxy.
Sectors to Watch-
Rate sensitive sectors may see some up move in second half specially Banks. Realty may recover after initial fall. IT and Telecom can see some recovery on approval of bail out plan by house of representatives. Metals may remain under pressure. Health sector may remain healthy in selected scripts.
Stock to Watch-
On the upside we may see Ranbaxy, TCS, Rolta, Hero Honda and Reliance Capital.
On down side we may see Cairns India, BPCL, RNRL and JSPL.