Markets to Remain Choppy on Wednesday

Wednesday, April 09, 2008 | | |

Alex Mathew Head of Research, Geojit Financial Services said, equities closed marginally lower on weak global cues and amid fear of high inflation due to strong crude oil. Crude was strong above USD 108 and is looking at a target of USD 112 hence was supporting the bears. Cement, steel, capital goods stocks were facing sell off whereas banking and financial sector stocks got much attention.

Overall trend will remain range bound for tomorrow and a breakout above or below 4735 - 4635 levels is very crucial and will give a direction to the market. Volumes in the F&O segment were lower and the PC ratio is also falling suggesting choppiness in tomorrow`s trade.

It is advisable to create long positions on, Nifty if Nifty futures trades above 4735; in that case strong short covering can be seen, and Nifty futures may test 4785 and 4831 levels. Volumes in the F&O segment were lower and the PC ratio is also falling suggesting choppiness in tomorrow`s trade.


Bhupendra Sharma, vice president, Hornic Investments said that markets closed down following the weak global markets and concerns over high inflation figures. Sensex closed down 169 points at 15557 while Nifty ended at 4709 down by 51points.

According to him, if Sensex crosses 15,800 level then markets may once again touch 16000 to 17000 in the short run, though any CRR hike by RBI may again pull markets down. He expects markets to remain positive on Wednesday. Stocks to be watched out are Yes bank, L&T, Welspun Gujarat, GIPCL, Torrent power, Sunil Hi-Tech and mid cap pharma stocks like JB Chemical and Glenmark Pharma.

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