Market Outlook For the Week:

Indices started the week on a NEGATIVE note however we did saw indices making mild bounce back during mid week on back of EXPIRY. This will be sixth consecutive week of index loss. Finally for the week NIFTY continues to remain below its 100 Week EMA. Technically, a chance of "Major" UPMOVE seems unlikely in near term. Even in case of bounce back we may face strong hurdle around 4400~4500 levels. Even F & O data continues to remain concern as NIFTY Future ended in discount of 61 points while more then 60% of F & O stocks had negative cost of carry. Surprisingly, NIFTY 25th Dec, 2008 PUT with strike price of 3800 had turned active, and is now amongst top 5 most traded put. Rising crude remains major worry going ahead for India. As mentioned previously traders should avoid catching falling knife.

SECTORAL INDICES

BSE AUTO (3689.92)

Move in BSE AUTO sector remained in line with our expectation. In last week we saw this index closing lower by 8.73% at 3689.92 levels. This sector has now closed below its June 2006, lows and probable move towards 3300 levels are highly probable. On up move levels of 4100 will act as strong hurdle.

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