Pre-Market Report on 16.09.2008
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B. Karthick
Sep 15, 2008, 11:59:21 PM9/15/08
to Kences1
Some more pain in the offing, as financial crisis deepens
Markets are getting ready for some more pain and the indices are
expected to open 3 to 4 percent lower as the jolt from the financial
crisis was more than expected. There is a good chance for the market
yesterday's low, which is around 13,150.00.
Stocks in Wall Street tanked on Monday, with the Dow Jones Industrial
Average plunging 500 points the most since September 2001 after Lehman
Brothers Holdings Inc filed for bankruptcy and insurance giant
American International Group Inc scurried to raise capital even as its
market value was cut in half by distraught investors.The Dow plunged
4.4 percent, where as the Nasdaq gave up 3.6 percent.Now it has
emerged as a possibility as the Fed prepares to meet Tuesday against a
backdrop of historic upheaval in the U.S. financial system. So there
is a string possibility of a rate cut tomorrow in the Fed meeting.
The picture in other Asian markets do not look rosy either.Nikkei 225
Stock Average futures dropped 585, or 4.8 percent, to 11,695 and ASX
200 Index futures dropped 2.8 percent to 4,692 in Australia. Markets
in Japan, China, Hong Kong and South Korea were shut Monday for public
holidays.
Sugar looks like the bright spot in the market but at a bad time.
Sugar demand is about to top production for the first time since 2006,
the year prices reached a 24year peak.Rupee weakened past 46 per
dollar for the first time in two years on concern investors will dump
riskier assets after Lehman Brothers Holdings Inc. filed for
bankruptcy.
Stay away from the market today and especially the banking stocks. We
expect some deep correction in ICICI Bank and HDFC Bank to a extent.
Realty stocks should continue their slide and metal stocks, especially
Steel stocks are set to drop in early morning trade.Midcaps and
speculative stocks are likely to hit lower circuits for few sessions
as money is expected to flow out from this segment. An easy way to
trade the market is to stay away from the trading desk.
Suitable stocks for intraday today:
<ICICIBANK, BHARTIARTL, SBIN, BHEL, PUNJLLOYD, MARUTI, PNB, ABB,
HEROHONDA, BANKBARODA>
Market Close Box:
BSE Sensex 13531.27 -469.54
NSE Nifty 4072.90 -155.55
USD Rs.45.94
Oil Nymex $95.71
B.Karthick
Research Analyst.
Markets are getting ready for some more pain and the indices are
expected to open 3 to 4 percent lower as the jolt from the financial
crisis was more than expected. There is a good chance for the market
yesterday's low, which is around 13,150.00.
Stocks in Wall Street tanked on Monday, with the Dow Jones Industrial
Average plunging 500 points the most since September 2001 after Lehman
Brothers Holdings Inc filed for bankruptcy and insurance giant
American International Group Inc scurried to raise capital even as its
market value was cut in half by distraught investors.The Dow plunged
4.4 percent, where as the Nasdaq gave up 3.6 percent.Now it has
emerged as a possibility as the Fed prepares to meet Tuesday against a
backdrop of historic upheaval in the U.S. financial system. So there
is a string possibility of a rate cut tomorrow in the Fed meeting.
The picture in other Asian markets do not look rosy either.Nikkei 225
Stock Average futures dropped 585, or 4.8 percent, to 11,695 and ASX
200 Index futures dropped 2.8 percent to 4,692 in Australia. Markets
in Japan, China, Hong Kong and South Korea were shut Monday for public
holidays.
Sugar looks like the bright spot in the market but at a bad time.
Sugar demand is about to top production for the first time since 2006,
the year prices reached a 24year peak.Rupee weakened past 46 per
dollar for the first time in two years on concern investors will dump
riskier assets after Lehman Brothers Holdings Inc. filed for
bankruptcy.
Stay away from the market today and especially the banking stocks. We
expect some deep correction in ICICI Bank and HDFC Bank to a extent.
Realty stocks should continue their slide and metal stocks, especially
Steel stocks are set to drop in early morning trade.Midcaps and
speculative stocks are likely to hit lower circuits for few sessions
as money is expected to flow out from this segment. An easy way to
trade the market is to stay away from the trading desk.
Suitable stocks for intraday today:
<ICICIBANK, BHARTIARTL, SBIN, BHEL, PUNJLLOYD, MARUTI, PNB, ABB,
HEROHONDA, BANKBARODA>
Market Close Box:
BSE Sensex 13531.27 -469.54
NSE Nifty 4072.90 -155.55
USD Rs.45.94
Oil Nymex $95.71
B.Karthick
Research Analyst.
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