Pre Open Market Commentary

Market got strength as the indices have closed at the upper end of their intraday range, accompanied by a positive market breadth. Further, it is supported by mutual funds and FIIs as they became net purchasers. FIIs were net purchasers to the tune of Rs 331.90 crores in equity on 2nd January 2007. Mutual Funds were net buyers to the tune of Rs 225.18 crores (provisional) in equity on 29th December 2006. This would lead to firm opening of the market today. Yesterday, markets ended higher on back of heavy buying in index pivotals especially in auto index. BSE sensex closed at 13,942.20 up by 155.30 points and Nifty was up by 41.00 points to close at 4007.40.Today, market outlook will be continued optimism as bulls are on a strong position and Asian markets were trading higher on Wednesday. Hong Kong index rose 1% to 20,519.67. Oil price was trading below $61 a barrel. Today, Nifty has support at 3,975 and resistance at 4035 and BSE Sensex have support at 13,850 and resistance at 14,200. However, it is our advice to watch trading session carefully.