Pre Open Market Commentary

Market may edge lower today. Yesterday, markets ended weak as selling pressure was seen across index pivotals especially in metal, FMCG and IT stocks. As a result, BSE sensex closed at 13,871.70 down by 143.20 points and Nifty was down by 35.25 points to close at 3,988.80. Today market outlook will be cautious and profit booking may be witnessed during trade, as Asian markets were weak in early trade. US market closed in green. DOW was up by 6.17 points to close at 12480.69 and NASDAQ was up by 30.27 points to close at 2453.43. Asian markets were trading mixed on Friday. Nikkei 225 index was losing 211.59 points to 17,131.23 and KOSPI was declining 0.7% to 1387.50. Oil price slipped 0.6% to $55.27 a barrel as mild US weather curbs fuel consumption and fuel stockpiles jumped 1.97 million barrels to 135.6 million last week. Today, Nifty has support at 3,955 and resistance at 4005 and BSE Sensex have support at 13,750 and resistance at 13,985. However, it is our advice to watch trading session carefully. FIIs were net purchasers to the tune of Rs 207.80crores in equity on 4th January 2007. Mutual Funds were net purchasers to the tune of Rs 198.04 crores (provisional) in equity on 3rd January 2007.