Market Prediction (14-09-2007)

**********World Market*************

U.S. stocks rallied after Countrywide Financial Corp. secured more financing and analysts speculated a plan to cut retiree health-care costs will boost profits at carmakers.
Countrywide, the largest U.S. mortgage company, rose the most in three weeks after Credit Suisse said it has overcome funding issues. General Motors Corp. posted its steepest gain since February after Citi Investment Research said the biggest U.S. automaker's shares may climb if the United Auto Workers agree to a union-managed health-care fund. McDonald's Corp. advanced to a record on plans to boost its dividend.
``The overall picture is good,'' said Jerry Jordan, who helps oversee $500 million as a portfolio manager at Hellman Jordan Management Co. in Boston. ``It shows the foundation this market has to eventually move higher.''


Overall World market at high.

*************Indian market **************

A bit of complacency is possibly getting into the markets the way we are seeing the midcaps behave etc. So we are just striking a bit of cautious chord over there, just in case something unexpected crops up on September 18 and there will be a bit of unwinding also before that because people would like to remain light before the event. Finally also once the event comes as you have seen in the past, possibly it gets discounted and then we look at the world beyond September 18. Nothing is going actually to materially change in that sense fundamentally. Of course, they will affect funds flow and things like that, but there will be still some time away. So net-net, if you want to be a little cautious, midcaps are definitely flying here and there. There is so much of corporate action, there is so much of PE action also. A lot of things are happening. But still I think we will take it when it comes like.

I for one, find the markets’ reactions extremely heartening on the one hand, but also very perplexing that our markets irrespective of all the disappointing news whether it is on the domestic front, prospects of a mid-term elections, IIP numbers which took people by surprise, whatever hiccups, our own domestic reasons. But most importantly the US scenario almost hurtling towards that dreaded R word, recession - irrespective of what happens in the next few days on the Fed, more importantly the five big brokerage firms results, the finance firms etc. That entire aside, our markets continue to remain very buoyant. Although, I continue to believe that there are enough reasons to be worried about for our market, but certainly the screen doesn’t show so .


Market Previous Close at 4529 .

Nifty is moving toward 4580 ( Next resistance level ).Support level at 4450 and 4480.Market may take mild dip in short term.Market may be Open Positive Tommorow.But be cautious until all Awaiting news are not clear.Market may be volatile in short term but market is strong for long term.