Strong volatile last week due to financial crises in Dubai resulted big sell off in world market including our market and tested a low of 4806, but lower level valuation again emerged and smart money was come into the market and resulted on itnra day basis strong recovery and resulted closed at 4941. We may consider in coming trading session it will face resistance 5000, on reversal selling opportunity, higher level resistance are 5150-5180 likely continue.

The Nifty gained 90 points over the day to close at 5122. Anotherday of follow-up strength for the markets yesterday as they opened with an upside gap and thereafter smoothly kept moving higher the entire day. By testing the levels of 17200/5130 again the indices have completed yet another beautiful looking “V” shaped reversal (See Exhibit 1 on Page 2). The move yesterday was much more encouraging in comparison to Monday as the gains were registered intra-day and with better market breadth.

Hot Market News    * ECONOMY : Sept IIP #s to be announced today.. BBG consensus for 7% growth vs 10.4% growth in Aug.. The six core infrastructure inds (contribute ~ 26% to the overall IIP) grew 4% in Sept vs 7.8% in Aug* MSCI : In the latest index revamp announced last night, Housing Development & Infrastructure Ltd (HDIL) along with Suzlon (SUEL) replace Glenmark Pharma (GNP) & PowerGrid Corp (PWGR) in the MSCI India index

Where you see the nifty at oct. expiry?

Too Much Of Anything Is Bad

STRATEGIES FOR THE DAY• JSW Steel Oct. Future (Rs. 913)Sell only in the region 912-918 with a stop lossabove 927 for an intra-day target of 899 and 892.• ICICI Bank Oct. Future (Rs. 929)Sell only on a move below 925 with a stop loss