Pre Open Market Commentary

Indian market is likely to open on positive note today. On Monday 29th January 2007, market closed lower mainly on back of RBI’s meeting on Wednesday, where the central bank is expected to raise short-term interest rates by 25 basis points. So, Bank stocks witnessed heavy selling pressure. As a result BSE sensex closed at 14,212.00 down by 70.70 points and Nifty was down by 23.25 points to close at 4124.45. Today major quarterly results are GAIL, Hero Honda, ITC, NTPC and Reliance communication. The outlook for the market remains volatile and mainly determine by the credit policy and RBI''s statements. US markets closed in green on Tuesday on back of rally in the energy sector due to jump in oil prices by 5.5% to $56.71 a barrel. DOW was up by 32.53 points to close at 12523.31 and NASDAQ was up by 7.55 points to close at 2448.64. The major stock markets in Asia trading lower on Wednesday. Nikkei 225 index was down by 115.62 points to trade at 17374.57 and KOSPI was down by 4.69 points to trade at 1366 while Straits Times were up by 10.77 points to trade at 3141.03 and. Oil price closed above $56 a barrel on back of cold US weather and OPEC supply cuts. Today, Nifty has support at 4107 and resistance at 4,175 and BSE Sensex has support at 14,175 and resistance at 14,370. However, it is our advice to watch trading session carefully.