Pre Open Market Commenatary

Market is likely to open on firm note today. On Friday 12th January 2006, trading session turned out to be a dream day for the bourses as both the indices Sensex and Nifty not only managed to cross the psychological level of 14k and 4k respectively once again but also closed at their all time high. This rally was boosted mainly by Bank index, which rose 6.79% on hope of large liquidity in the market as the SLR can be maintained below 25%. As a result, BSE sensex closed at 14,056.53 up by 425.82 points and Nifty was up by 110.20 points to close at 4052.45. Today market outlook will be volatile and some profit booking may be witnessed as the indices are at their all time high. US market closed in green on Friday. DOW closed at 12,556.08, up by 41.10 points and NASDAQ was up by 17.97 points to close at 2502.82. Asian markets were trading in positive territory on Monday. Nikkei 225 index was adding 194.63 points to 17,251.64, Singapore''s Straits Times Index was trading at 3014.68, up 5.59 points and Hong Kong''s Hang Seng Index was adding 173.95 points to 19,787.36. Oil price closed below $53 a barrel. Nifty has support at 3,975 and resistance at 4,095 and BSE Sensex has support at 13,850 and resistance at 14,220. However, it is our advice to watch trading session carefully. FIIs were net purchasers to the tune of Rs 159.20 crores on 12thJanuary 2007. Mutual Funds were net sellers to the tune of Rs250.66 crores on 11th January 2007.