Sensex to play catch up to the high flying emerging markets
Dalal Street looks to bounce back on Friday, as emerging markets pulled back in a big way when the markets in Mumbai were closed for Diwali. So expect a catch up from stocks in Mumbai. The Sensex is likely to see a 500 point rally in the morning as money on the sidelines might flow in to the markets. U.S. stocks rallied Thursday, pushing the Dow Jones Industrial Average back above the 9,000 level, after the government said the economy shrank less than forecast in the third quarter. The Dow gained 189 points or 2.11 percent, where as the Nasdaq gained 2.49 percent to end the day with modest gains. Asian stocks are pointing a slightly lower open on Friday. Japanese stocks fell for the first time in four days after companies cut profit forecasts on the rising yen and slowing demand, and as investors viewed recent gains as excessive. Meanwhile on the domestic front,India's annual inflation rate eased to nearly a 5 month low giving the Reserve Bank of India room to cut rates further to shore up growth.Unitech is again made the headlines as the company sold a majority stake in its telecom arm to Norway based telecom giant Telenor for Rs 6,120 crore to meet cash crunch in its domestic business. Investors are advised to stay away from speculative stocks and concentrate on the blue chips and play for the long term. It is not advisable to day trade as we might witness huge volatility today. The Sensex has a technical resistance of 9270.00 on the upside, if the market manages to close above this level, the next stop in this journey is 9850.00 which is a bug hurdle to surpass for the market. So investors who believe in technicals should wait for the market to surpass the 9850 level to take any medium term positions. Not a great day to pick up stocks early in the day, as there will be a gap up open. Market Close Box: BSE Sensex 9044.51 36.43 NSE Nifty 2697.05 12.45 USD Rs.49.77 Oil Nymex $65.08 B.Karthick Research Analyst. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
