Market Guidance for 2nd August 2006

Dear All,

Yesterday has been a very interesting day for tha markets as it closed marginally up in the end . There has been a bitter fight between the bulls & bears in market , but the Fitch's Rating of India & hike in PLR interest rate by leading banks helped the bulls to supress the bears. So the markets closed in green for the second consecutive day.

Today the US markets are down on the confusion over hiking in interest rates by Federal Reserve & higher crude oil prices due to geo political tensions . But the asian markets are trading healthy which gives us with mixed clues. Though the Indian markets has lots of good news to cheer , still the bears could take control at any moment. High volatility to be witnessed today. So stay away from trading . Any movement of Nifty above 3183 is a sign of bullishness and movement below 3124 will see a huge profit booking leading to downslide for a couple of days.

Watch Banking stocks today.

Regards.,

Muthu Kumar.K