After losing over 3% this week, major indices will look for some revival. Despite inflation falling and IIP numbers beating expectations the bears managed to remain in control. While FIIs offloaded stocks worth Rs24.34bn during the week, domestic institutional investors were net buyers of around a mere Rs370mn. Bulls may hope that some positive developments on Lehman Brothers over the weekend spares them the Monday morning blues. International reports state that the Treasury Department and Federal Reserve have been working with Lehman to help solve its problems, including helping to find potential buyers. Meanwhile, Hurricane Ike is expected to hit the Texas coast early on Saturday. This could lead to some rise in oil prices which are around US$102. The local indices are at the mercy of foreign cues and foreign institutional investors for now. A sun outage later this month may only worsen sentiment. Use dips to take trading positions. For investment, you could perhaps wait….there may be lower levels in the coming weeks.
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