Pre-Market report on 07.07.2008
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Gum Tha lakadi Gumma SUKU
Jul 7, 2008, 12:17:09 AM7/7/08
to Kences1
Nuclear deal to wrap things in bulls favour today
===================================================
Markets are expected to show some volatility on Monday amid political
concerns. The government is preparing the ground to clarify by end of
the day, to the Left parties on the issue of moving forward on the
Indo-US nuclear deal. Any negative news on support withdrawal by the
left might ignite another round of selling. We strongly believe that
there will be a happy ending to this issue as SP is backing up the
deal.
Some other factors that we might need to concentrate would be the
Industrial production numbers due this week and also the inflation.
Last but not the least, Crude is one more thing that we need keep a
keen eye on. The price of Crude is expected peak some time soon as we
see signs of frustration across the globe on the irrational spike in
the price. Meanwhile the Asian markets were down on Friday because of
lack of conviction in equities in the current macro economic
scenario.
After a decent gain on Friday, we might see a tight trading range this
morning ahead of the news on political front. We might see some
direction as the day progresses and the odds favor the bulls. Coming
to some sectoral plays in the market, we would like to stay neutral on
IT as sector at this point of time. No doubt the Q1 numbers that will
come out of Infy boardroom will be positive and the profits will be
better than expected, boosted by currency gains. The only factor that
weighs against the IT sector is the kind of resistance the stocks have
shown to the broad market correction. We think that the IT stocks
remained resilient and were immune to the current carnage and so
should not see great demand as investors would concentrate more in the
sectors and stocks that have taken more heat than necessary in the
current crash/ correction.
Oil companies might have a negative news in the offing as one of the
pink papers reported that,Private oil companies like Reliance
Industries (RIL), Essar and Cairn may have to forgo some of their
profits to share the huge subsidy burden in the oil sector. Sugar
might see some more action on firming global prices and also short
fall of Sugarcane crop in Pakistan. Meanwhile Capital Goods stocks
like BHEL and L&T looked great in Friday's trade and looks ripe to
accumulate. Overall a volatile session on cards with an upbeat
sentiment barring some bad news on the political front.
Market Close Box
BSE Sensex 13454.00 359.89
NSE Nifty 4016.00 90.25
USD Rs.43.34
Oil Nymex $145.2
N.Sukumar
Research Analyst
===================================================
Markets are expected to show some volatility on Monday amid political
concerns. The government is preparing the ground to clarify by end of
the day, to the Left parties on the issue of moving forward on the
Indo-US nuclear deal. Any negative news on support withdrawal by the
left might ignite another round of selling. We strongly believe that
there will be a happy ending to this issue as SP is backing up the
deal.
Some other factors that we might need to concentrate would be the
Industrial production numbers due this week and also the inflation.
Last but not the least, Crude is one more thing that we need keep a
keen eye on. The price of Crude is expected peak some time soon as we
see signs of frustration across the globe on the irrational spike in
the price. Meanwhile the Asian markets were down on Friday because of
lack of conviction in equities in the current macro economic
scenario.
After a decent gain on Friday, we might see a tight trading range this
morning ahead of the news on political front. We might see some
direction as the day progresses and the odds favor the bulls. Coming
to some sectoral plays in the market, we would like to stay neutral on
IT as sector at this point of time. No doubt the Q1 numbers that will
come out of Infy boardroom will be positive and the profits will be
better than expected, boosted by currency gains. The only factor that
weighs against the IT sector is the kind of resistance the stocks have
shown to the broad market correction. We think that the IT stocks
remained resilient and were immune to the current carnage and so
should not see great demand as investors would concentrate more in the
sectors and stocks that have taken more heat than necessary in the
current crash/ correction.
Oil companies might have a negative news in the offing as one of the
pink papers reported that,Private oil companies like Reliance
Industries (RIL), Essar and Cairn may have to forgo some of their
profits to share the huge subsidy burden in the oil sector. Sugar
might see some more action on firming global prices and also short
fall of Sugarcane crop in Pakistan. Meanwhile Capital Goods stocks
like BHEL and L&T looked great in Friday's trade and looks ripe to
accumulate. Overall a volatile session on cards with an upbeat
sentiment barring some bad news on the political front.
Market Close Box
BSE Sensex 13454.00 359.89
NSE Nifty 4016.00 90.25
USD Rs.43.34
Oil Nymex $145.2
N.Sukumar
Research Analyst
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