Friday, March 6, 2009

BOR: Market Outlook: Indian Markets are likely to trade weak on account of weak global cues.

Market Outlook: Indian Markets are likely to trade weak on account of weak global cues. Supports for Nifty seen at 2500-2530 & resistance near 2600-2650. If Nifty breaches 2500 then all we may see some more downside. There is fear among retail investors leading to continuous liquidation. Improving fundamentals like falling interest rates, strong auto sales are being shrugged off because of the weak sentiment in the market.


Nifty Outlook: Pivot point: 2601

S1: 2539, S2: 2501, S3: 2439

R1: 2639, R2: 2701, R3: 2738

Indian ADRs: ICICI Bank down 12%, HDFC Bank down 8%, Infosys, Tata Motors down 5%, Satyam up 2%

On the global front: Wall St Tumbles; Dow below 6600 first time since April '97 and Asian markets trading weak; Nikkei down 3%. US investors were rattled by doubts about the survival of General Motors, energy weakness, and JPMorgan Chase’s credit rating cut. Beleaguered auto giant General Motors, which has already received USD 13.4 billion in Federal loans, has hinted at possible bankruptcy if its restructuring plans do not succeed in the long-term. Also, auditors raised substantial doubts about the company's ability to survive outside bankruptcy if it fails to stem its losses or stop burning cash.


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