Monday, January 10, 2011

Battering in Auto stocks likely to extend, Nity support between 5800-5840

Crude oil jumped back to $90 levels after news the Trans-Alaska Pipeline network was shut down due to a leak. Indian equities are unlikely to recover from the shock and awe of last week.

Nikkei is closed while chinese markets are trading in the green today.

News Bytes

* iGate set to announce Patni acquisition today

* PowerGrid plans Rs 10,000-cr bond issue in 2011-12

* Fortis wants to expand in West, S-E Asia

* Nalco eyes 25% jump in net profit in 2010-11

* Cotton output forecast raised to a record 329 lakh bales

Nifty - Some more pain ahead

While markets are unlikely to take support at current levels, we expect 1-2 pct cut in Nifty from here on. We believe Indian markets are unlikely to slide below 5800 levels. Except for Inflation the tide is still with the Bulls though no major buying was witnessed in the past one week. Expect value buying in the coming week, which might rescue Indian markets