Daily Call - April 12th, 07

The markets are likely to plunge in early morning trade in line with the international sentiment. The Dow lost 89 points, breaking it’s eight session continuous rise with Nikkei following its footsteps. The Sensex has now made a lower top of 13294 as compared to 13386 seen on 23rd March. So the 13,386- 12316 range, that was defined earlier remains intact . For the Nifty 3902 and 3554 still remain the defined boundaries. The derivatives data suggests that punters had gone short in the Nifty Wednesday as the discount between cash and Nifty futures widened to 31 points from 21 on Tuesday. Shorts were built in the IT and Banking arena, while metals went long yesterday. The metals today face their litmus test. The cash stocks too, which were beginning to do well are likely to see extensive profit taking because retail participation had only increased yesterday. I think the markets are likely to lie low today ahead of the Infosys numbers and guidance, that will come on Friday the 13th.