Pre-Market Report: 24.09.2009

[B. Karthick]

Negative opening on cards, Markets likely to recover late in the day

Stocks on Dalal Street are likely to open lower after correcting by
nearly on percent on Wednesday. Expect the banchmark index or the
Sensex to open lower by 0.5 percent or 70 to 80 points. Do not expect
a big fall in the index, as we believe that there might be a bounce in
the later half of the day, as the underlying tone is still bullish.

Stocks closed lower Wednesday as a brief rally followed the Fed's
economic statement and then faded. The Dow came within 82 points of
crossing 10,000 for the first time since October, but ended the day
with a loss of 81.The Dow fell 81.32, or 0.8 percent, to 9,748.55. The
Standard & Poor's 500 fell 10.79, or 1 percent, to 1,060.87, while the
Nasdaq composite fell 14.88, or 0.7 percent, to to 2,131.42.

Stocks witnessed a volatile session yesterday, with the Sensex
dropping more than 160 points in the final hour of trade. There was
some heavy selling seen in Realty and It stocks, with investors
booking profits in stocks related to infrastructure and Real Estate.
Ranbaxy, GAIL and Powergrid were the only notable gainers in the index
stocks.

As mentioned in our review yesterday, Arti Ind spiked again in huge
volumes . The stock gained 9.3 percent to reach Rs 99 and investors
could give a pass to the stock at these levels, as we believe it is
expensive at these levels.Tanla Solutions has seen unusual volume
activity with the over 11 million shares traded and a 11 percent gain.
Harrisons Malayalam, GM Breweries, Cords Cables and Steel Strips were
other stocks that have seen abnormal activity.

Expect a lower open, but stocks are likely to recover in the later
half of the day as we see a strong support at 16,680.00. Do not short
this market, as we are not over with the bull run yet. We recommend
investors to take intra-day positions if the market falls more than
150 points.