It was atrocious day for the market with selling seen across the globe. Following the weak global cues and unwinding pressure in the domestic space displayed the free fall picture. Almost all the technical and psychological levels were broken with no support from anywhere. Realty, metals, power, and Auto?s and midcaps collapsed, ended with huge losses. Markets were halted for a while in this meltdown and resumed later but managed to recover 700 points from the days lows. Sensex crashed around 2060 points, the largest fall in a single day and tumbled to a low with high volatility as investors feared following weak global cues amid terror of the US recession. Midcap and small caps ended down over 10% which is recorded as worst performance in the life time. Today was biggest ever fall for the markets. All Asian markets ended in deep red and the European indices are witnessing a same trend.

Sensex ended down by 1408 points at 17605.35. Weighing on the Sensex were losses in Rel Energy (1776.05,-16 percent), ACC (727.6,-16 percent), Bajaj Auto (2064.3501,-15 percent), NTPC (205.65,-14 percent) and RCVL (612.9,-13 percent). Losses are restricted by gains in .

Edelweiss Capital came out with healthy 3rd quarter numbers. Reported net profit of Rs 95 cr for the quarter ended December 2007 as against Rs 31 cr in same quarter of last year. Net sales went up by 228% at Rs 323 cr Vs Rs 98.5 cr. Operating profit jumped at Rs 145 cr from Rs 49.8 cr and operating profit margin was down at 44.89% Vs 50.57%. I-banking segment grown by 80% YoY, institutional equities grown 120% YoY. The Investment Banking business has successfully closed 24 transactions in 9 months. 1/3 rd revenues from arbitrage, 18% from interest, 40% from fee and commission. The total average daily volumes for Edelweiss Securities have grown from Rs 1,800 cr in FY07 to Rs 4,500 cr for the current year. The stock ended down despite good performance in the quarter number which was struck in the panic selling market.

Mumbai-based apparel maker Kewal Kiran Clothing Company engaged in manufacturing and marketing of ready to wear apparels. The company?s brands include Killer, Lawman, and Integriti. Today reported 40% increase in net profit to Rs 5 cr for the quarter ended December 2007 as against Rs 3.6 cr in the same quarter, last year. Net sales for the quarter climbed 35.44% to Rs 42.74 cr as compared to Rs 31.56 cr in the corresponding quarter, a year ago. Total income surged 34% to Rs 45 cr as against Rs 33.52 cr in the same quarter, a year ago. The earnings per share (EPS) for the quarter rose 40.48% to Rs 4.13 as compared with December 2006 quarter. Recently the company has raised Rs 81 cr for its capital expenditure requirements which involve setting up new manufacturing facilities, expansion of distribution network by opening additional exclusive outlets, building corporate office and to meet general corporate purposes. This quarter numbers were not in line the market expectation despite good sales seen in the killer brand KKCL could not maintain the margins at both EBIDTA and Net profits levels. Stock traded at lower circuit levels.

Technically Speaking: Markets traded extremely weak with heavy bouts of selling seen throughout the day. Indices made intraday high of 18,919 and low of 16,951. Turnover for the day was around Rs 9000 cr. The breath has been in favor of Declines Vs Advances.

Our Sensex target of 17,600 was met today which we mentioned past one week. Sensex is heading towards 15,700. On the higher side resistance likely to be at 17,800 and 18,100, however 17,150 is a support level. We advice better to be in cash for time being.