Market Prediction (11-09-2007)

The economy is under ``downward pressure'' from the turmoil in credit and housing markets. Yellen, in prepared remarks to a conference in San Francisco, didn't explicitly endorse an interest-rate cut, while noting investors have raised bets on that outcome.

The Standard & Poor's 500 Index declined 0.66 percent, and the Dow Jones Industrial Average dropped 0.36 percent.

The three-month rate that banks charge each other to borrow dollars fell for the first time in 13 days, falling 2 basis points to 5.704 percent. The three-month London interbank offered rate, or Libor, rose to a seven-year high of 5.725 percent Sept. 7, reflecting reluctance to extend credit.

Libor ``hasn't gone down very much,'' Gilhooly said. ``You still have problems in terms of funding pressure.''

U.S. retail sales rose 0.3 percent in July, following a 0.7 percent decline the previous month, the Commerce Department reported Aug. 13. The department on Sept. 14 is forecast to say that retail sales rose 0.5 percent in August, according to the median forecast of 63 economists surveyed by Bloomberg News.

`Buying Behavior'

``If the fallout we saw in credit in the last months has had an effect on buying behavior, it's going to solidify'' a Fed rate cut, said George Goncalves, chief Treasury and agency strategist at primary dealer Morgan Stanley. ``A 25-basis-point cut is the right course of action.''

The U.S. economy lost 4,000 jobs last month, the first decline in four years, the Labor Department reported Sept. 7. The median forecast of 88 economists surveyed by Bloomberg News was for 100,000 new jobs.

Two-year Treasury notes returned 1.09 percent in August, the best monthly performance since 2003, according to indexes compiled by Merrill Lynch & Co.

Treasuries may rise through June 2008, according to a survey of investors by Ried, Thunberg & Co., a unit of ICAP Plc, the world's largest interbank broker.

*****************Prediction*******************

Again Weak Global Cues,Market Volatile,Nervousness is still in Globe.Only one suggestion before bet on nifty be cautious.

Nifty on monday shown a Strong attitude ,great recovery from very low opening.Even Market is not Expensive at this level,but only waiting for some positive or negative news who will decide next segment of market.

On tuesday market may again show volatility .Nifty has a Support at 4452 and 4420. Nifty has a resistance at 4532 and 4568.

Our Prediciton is that market on Tuesday may rangebound on tuesday.If you long term this market is very strong , but in short term it is very volatile .