Pre-Market Report - 22.02.2008

[K.Karthik Raja]

Time to think as stocks sink
===================================================
Wall Street tanked on weak regional manufacturing data. Dow Jones
ended the day at 12,284.30 down by 142 points while Nasdaq is down by
27.32 points to 2,299.78. This is undoubtedly one of the toughest
fights between the bull and the bear cartels witnessed in the last 2-3
years on the wall street. This year is make or break for the US
Markets as the sound of recession increased by many decibels. And we
believe the technical levels of 12,750(resistance) and 11,940(support)
for Dow Jones will take the wall street to one side of the boat.

Japanese markets followed the big brother with Nikkei taking a initial
plunge of 305.76 points at 13,382.52. We are more confident about the
Japanese economy than the US economy given the recent GDP surprise.

Indian Markets have never witnessed this kind of drag phase in the
last 4 years. Not to say there are 3-4 thousand point plunges in the
Sensex but the recoveries are smart enough barring this time.We
believe there is absolutely no point in getting out of the market and
we strongly take this as another prolonged bear cycle with in the bull
phase.Stay invested but with more patience as things cannot turn
overnight.

Markets are likely to open down a big way but recovery from the lows
is a certainity. Sensex is likely to lose somewhere between 200-300
points unless pre-budget rally sets in.

Government in an unprecedented move approved a fresh Rs 500 crore
assistance to help exporters after a Rs 300 crores alloted recently.
Textiles and farm product related companies are likely to benefit
immensely from the forthcoming budget. Infrastructure and logistics
are the other sectors to watch for in the budget.

Definitely not the right markets to trade but definitely right time
for a
long term investment. Have a great day.

Market Close Box :
BSE Sensex 17734.68 117.08
NSE Nifty 5191.80 37.35
USD Rs.40.07
Oil Nymex $98.23

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