Pre-Market report on 07.03.2008

[Sukumar]

Oh not again ! Get ready for another day of pain
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Dow Jones on its way down knocked off the tiny support level of
12,140-12,170 range, increasing the burden on 11,940 level yet again.
Wall Street plummeted yet again with Dow Jones wiping off 214.6 points
to close at 12,040.39 while the tech heavy NASDAQ dipped 52.31 points
to end at 2,250, its 18 month low. A record number of home
foreclosures and more bad news in the credit market pushed the indices
to low levels. Crude continued to march ahead closing at a record high
of $105.47. US Dollar yet again slipped against other major global
currencies. All in all negative news continued to flow uninterrupted
only to worsen the situation.

Japanese markets tanked on strong global negatives. At the time of
writing Nikkei was trading down 428.32 points at 12,787.1. Japanese
Yen continued to show strength against the Greenback(US Dollar).

Back home Indian Markets are most likely to open gap down in a big way
and continue to trade down though volatility is not ruled out.
Inflation figures to be announced late in the day will add no good to
the markets. Though markets tend to surprise when all the pointers are
looking bleak, unlikely to happen this time. Blood continues to spill
in the midcap domain, where stocks are flying all over in the
beginning of January 2008. We expected a huge correction in January or
February but the extent of the correction is definitely beyond our
expectations. Lack of retail participation only added to the woes of
the falling market.

Stay on sidelines but long term investors are encouraged to add on
dips as market continues its journey to reach Mr.Bottom.


Market Close Box :
BSE Sensex 16542.08 202.19
NSE Nifty 4921.40 57.15
USD Rs.40.29
Oil Nymex $105.4