Market Prediction (13-09-2007)

*******World News*******
The dollar fell to a record low against the euro as investors bet the Federal Reserve will reduce its target interest rate, narrowing the gap between the U.S. and Europe.
The currency declined for a sixth day, the longest losing streak since April, as investors wager the Fed will cut its key borrowing rate by a half-percentage point to 4.75 percent next week. Futures show the European Central Bank will raise its rate a quarter-percentage point to at least 4.25 percent by year-end.
``The Fed will cut later this month and continue to do so this year at the same time as other major central banks will be holding, and eventually raising, rates, and that's weighing on the dollar,'' said Michael Woolfolk, senior currency strategist at the Bank of New York Mellon in New York. ``Interest-rate differentials will continue to conspire against the dollar.''
The dollar fell to $1.3873 per euro at 10:27 a.m. in New York, after earlier declining to an all-time low of $1.3889. That compares with the previous low of $1.3852 on July 24.

*********Indian Market on Thursday******

I think till the 18th, one should see some amount of consolidation happening. I think it will be in a narrow band possibly 150-200 points either way and post 18th it should move beyond 15,600-15,700 levels, I think one should see a new high after that. The local players are quite active and when local players are active, we normally see the smallcap and the midcaps moving and that is where the liquidity flowing in .

Normally in September every year there are less money inflow in market.So market is volatile in short term.Be Cautious for your money before 18th Sept.

Market Prediciton : Nifty in downterm can touch 4412 but on upper level it have a resistance at 4432. It doesn't seems any upward movement beyond 4432 at this level.