Weekly Newsletter - Oct 18 2008

Fundamentals and technicals are hardly heeded these days as investors and market participants across the globe wait for some signs of relief. Nothing seems to be very forthcoming despite guarded measures world over, including India. The only thing the bulls could bank on were some banking stocks which managed to clock some gains even as the Sensex fell below a psychological mark of 10,000.

 

The results season is on and there is no solace. When the big boys on the street start tumbling like nine pins the situation does get scary. Among the heavyweights, Reliance too will announce its numbers.

Global credit crisis and headwinds in the domestic economy have influenced heavy selling by FIIs in India. Over the last five days, FIIs have sold worth Rs5,042cr. Year to date, the figures stand at an alarming Rs47,838cr.

The Nifty is yet to find a bottom. We expect Nifty to trade within a range of 2,800-3,000 levels on the lower side. On the upside, we believe intermediate resistance will be witnessed at 3,350 levels.