"Reliance Power Listing on 11th Feb'2008"

Our indices had a gap up opening taking overseas cues and due to short covering Nifty given a break out above 5404 level and closed above 5460 at the end after substantial volatility. The raise from 5137 level of thursday closing to 5545.40 in just two sessions, naturally invited supply from trapped investors, to create liquidity, as most of the analysts predict another round of bearishness to set in once again during the year. Nifty and Sensex have closed above 5DSMA at the end of the session inspite of volatility and face resistance at 100DSMA Nifty(5602.38) & Sensex(18855.80) during this week.

In our view, the sceptism among most of the traders and investors, is reflected in the low volumes, since the price wise correction has taken in shortest time, thus, time wise correction will take some time for return of investor's confidence in secondary markets. Reliance Power will be listed on the exchanges on 11.02.2008; if the demand for these shares is good, as witnessed in the grey market premium before and at the time of subscription, the allottees would reap in good returns, which shall reduce the losses suffered recently, might improve the sentiment to positive, on the expectation of investor friendly budget, as this would be last budget from UPA government.

In view of fears of recession once again daunting US economy, US indices closed in negative territory, wiping out the gains of friday, which shall affect the sentiment, and a gap down opening of Nifty, and volatile trade can be expected and the Nifty might trade within the range of yesterday (5315-5545) for the day,