Weak global cues likely to favor the Bears

Stocks in India look forward for another day of red as the selling
pressure is likely to persist on Tuesday. Yesterday's low of 9050 is
highly unlikely to be broken as the support is too strong to break
technically. Avoid going short after a negative open this morning.

Wall Street finished sharply lower Monday as investors pored over more
signs of economic weakness, including a huge round of layoffs in the
financial sector.The Dow ended down 223 points or 2.63 percent, where
as the Nasdaq lower by 2.29 percent or 34 points at 1,482.

The latest news is that Yahoo Inc Chief Executive Officer Jerry Yang
will step down,following his failure to negotiate a takeover by
Microsoft Corp.Asian stocks fell, breaking a two- day gain, as a
slowdown in the global economy dimmed the demand outlook for
commodities.

Metals are likely to be under pressure for the second day. The only
respite might be in the Banking and some select Tech stocks. Morgan
Stanley said it is investing planning to invest an additional $1
billion over the next five years. In a separate development Unitech
has repayed its loan to India Bulls and has also is mulling to sell
its 200 room hotel in Gurgaon.

Today might not be a big scoring day for the bears, as there is strong
chance that the market will bounce back after a lower open. We caution
investors against going short in today's market.

Market Close Box:
BSE Sensex 9291.01 -94.41
NSE Nifty 2799.55 -10.80
USD Rs.48.99
Oil Nymex $54.95

B.Karthick
Research Analyst.

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