No stopping for the bears, stocks to slide further
Jan 13, 2009

Stocks on India are set to fall on opening bell, as the global
economic crisis worsened. Expect the Sensex to give up nearly one
percent or nearly 100 points for the day. We might not see a big crash
after the kind of fall we have witnessed in the past week.

The Dow Jones industrial average fell for the fourth session Monday as
oil prices tumbled and as worries about the financial sector grew. So
far this year, the Dow is down 3.5 percent.The Standard & Poor's 500
index fell 20.09, or 2.26 percent, to 870.26, and the Nasdaq composite
index fell 32.80, or 2.09 percent, to 1,538.79.

Asian stocks are likely to slide on opening bell.Japanese stock
futures dropped on concern falling commodities prices and the yen’s
appreciation will batter company earnings. Australia’s S&P/ASX 200
Index fell 1.1 percent to 3,642.90 as of 10:08 a.m. in Sydney.

IT sector is likely to be under the gun after fresh reports of
irregulaties by other IT firms like wipro and Megasoft. Metalmight be
strained further after a dissapointing guidance from Aluminum major
Alcoa. We would like to reiterate our stand on Realty, please stay
away from these stocks.

We advice investors to wait on the sidelines for now, as things have
been deteriorating and could worsen further. Stick to quality stocks
and PSU's if you would like to be a long term investor.There is a huge
short position build up in the market now and this might be a blessing
in diguise, as it could prevent the market froma sharp fall as short
covering might save the day for the indices.
Previous Close Box:

BSE Sensex 9110.05 -296.42
NSE Nifty 2773.10 -99.90
USD Rs.48.60
Oil Nymex $37.59

Research Desk.

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