Yesterday, the markets witnessed heavy gains in the initial
sessions where Nifty touched new highs and crossed 6000 mark. The whole session
was quite choppy with tqo times, the nifty slipping by about 50 points in the
red and then staging smart recovery.

 

The recovery was as swift as the fall. Many shares touched
new highs that were not thinkable about fortnight ago. RPL share crossed Rs 294
as open interest of more than 2  crores
shares were added to it.

 

Late session witnessed nifty falling by 54 points and
finally closing at 32 point loss.

 

Now what is in store today?

 

Yesterday night in early trades Dow Jones lost about 225
points on CITI reports. Indian markets now are closing linked to Global markets
and can not stay aloof of developments else where in the world.

 

Telecom shares are also poised to lose a lot on account of
adverse spectrum allocation except of RCOM which could benefit RCOM.

 

FMCG sector also is not attracting investors for poor
results. IFCI too is witnessing buyers backing off, and Oil price rise is also
a matter of concern.

 

The recent good news of Fed Rate cut has already been discounted
by the market.

 

On the good news front, Reliance Petroleum is going to be
upstream ahead if schedule and hence witnessing strong rise. Reliance Power IPO
is also keeping markets active.

 

Tomorrow on 2^nd November, it would be worthwhile
to take markets some definitive course till noon. In the meanwhile, RPL appears
good bet, accumulate at every dip for short to medium term