Pre-Market report on 11.07.2008

[B. Karthick]

Sensex to trade up, expect stock specific buying
Jul 11, 2008

Stocks are headed for a higher open on Friday on the back of positive
global cues. We expect to see some stock specific activity and there
is a good chance that midcaps might have the upper hand over the
Sensex based stocks. A close above 14,000.00 will be a psychological
victory for the bulls.

Back in US, markets stayed higher for most of the day and ended with
decent gains inspite of a spike in the oil. The Dow gained 0.7 percent
and the Nasdaq gained 1 percent.A multi- billion dollar deal between
Dow Chemical Co. and rival Rohm and Haas Co.helped offset concerns
about the financial sector and energy costs.Crude oil traded near $142
a barrel after rising more than $5 in the last hour of New York floor
trading on concern of Iran tensions.

Expect the Dow Chemical deal to spur some buying in Fertilizer and
Chemicals stocks in the domestic markets. We are bullish on the sector
as a whole as we believe the supply Vs demand and the spike in food
prices in the coming years would increase the profits for the
companies in this sector. One other sector that might be of interest
in todays trade would be banking, where UTI announced that it might
sell nearly 17 percent of its stake in Axis Bank.There is also
speculation in the market that ICICI Bank might use some of its $ 5
billion in cash reserve to make some foreign acquisitions.

Cairn India is another stock that might see some demand as Crude
bounced back in the global markets. Today's action will be strictly
stock specific and operator driven. So do not expect a huge move in
the Sensex, but watch out for some sharp moves in speculative
counters. All we are looking is for a close above 14,000.00 to give us
a reason to party over the weekend

Suitable Stocks for Intraday Trading:
< DLF, RELINFRA, STER, PUNJLLOYD, SESAGOA, BOMDYEING, TATAPOWER, ABB,
CENTURYTEX, PNB >

Market Close Box:
=================
BSE Sensex 13926.24 -38.02
NSE Nifty 4162.20 5.10
USD Rs.43.16
Oil Nymex $141.6

B.Karthick,
Research Analyst.

[Kence...@gmail.com]