Market Report

Hope everyone of you enjoyed the rally yesterday.It all started with a rumor published in an Italian newspaper that IMF may finance Italy's debts, the Asian markets rallied and the markets were in no mood to shed the gains when IMF came out with an announcement saying it was all rumors. The rally was so significant as if the markets were looking out for an excuse for a rally. Considering the 9 straight day fall in FTSE, and 7 day losing streak in the US markets, this rally is justifiable.

In our markets Hero Motocorp was down as the falling rupee means more royalty payments and the other index stock which was down is BajajAuto.Among the index heavy weights RELIANCE lead the rally as the company had issued an arbitration notice to the Oil Ministry's move to disallow some of the investments of the company in KG-D6.

Japanese biggest Mutual fund,Kokusai asset Management said, it had sold all its holdings in Italian, Spanish and Belgian bonds.If you remember, they have sold all their Greek Bond holdings exactly 2 years back.

Asian Markets(Japan,Hong Kong) are trading almost a percentage up at 0715 hours IST. Japan's jobless data came at 4.5% above the estimates(Nikkei may erase its initial gains,currently 1% up).

Moody's says Indian Economy slowing more than expected and no wonder ,SGX Nifty is marginally down at 4866 at 0715 hours IST.(while the other Asian indices are up).


Markets may open flat and I expect the markets to drift lower for the day.Keep an eye on the European developments.EU banks to face selling pressure today.The chances are more for our markets to move lower once the Europe market opens.

Alex sir's views- Resistance for Nifty is at 4872, 4887 and 4924.

Support is at 4818,4789. Profit booking can be expected by noon.