Pre-Market Report: 21.07.2009

[B. Karthick]

Positive open on cards, Correction likely in the near term

The stock market indices in Mumbai are set to open higher again as
there seems to be no stopping for the bulls. There has been heavy
buying in IT and commodity stocks for the past few sessions, as
investors are betting that things will not be so bad as feared. Expect
the Sensex to open higher by more than 100 points or 1 percent, but we
see a small pull back, as the run up has been vertical.

Stocks on Wall Street jumped again Monday, giving the Dow Jones
industrials their sixth straight advance, as investors got more robust
earnings news from big companies and data that suggests the economy is
closer to a recovery.The Dow rose 104.21, or 1.2 percent, to 8,848.15
and the Nasdaq composite index rose 22.68, or 1.2 percent, to
1,909.29.

It was IT all the way as technology stocks were on fire on Monday. TCS
gained nearly 15 percent to close at Rs 500, a new 52 week hight,on
the back of great quarterly numbers. Wipro was also active ahead of
its results on Wednesday. The stock closed at Sr 460 or nearly 7
percent higher when compared to Friday's close.

As expected there was heavy activity in select midcaps on Monday. GKW
Ltd, Thomas Cook, Cambridge Tech, Cords Cable and Guj NRE Coke were
some of the high fliers in the market.Gujarat NRE Coke looks really
hot in the current market. The stock surge by 16 percent on a volume
of more than 20 million shares on the NSE.There is still some room for
the stock (Rs 60) as the market started realizing the value of the
company's holdings in the mines in Australia and also plans to set up
new plants in AP and Gujarat.

LIC Housing, Chambal Fertilizers, Radico Khaitan, Garware Offshore and
Finolex cables are some of the stocks to watch out in today's trade.
Overall, a positive opening on cards but a small correction is not
ruled out soon.