Pre-Market report on 28.03.2008

[naresh0...@yahoo.co.in]

Midcaps likely to continue the momentum. Indices to get into a
groove.

US GDP from October through december increased at a pathetic 0.6
percent annual rate, in line with estimates. The GDP sharply reduced
from the previous quarter's growth rate of 4.9 percent. The economy
needs to contract for six straight months to be considered in a
recession. Wall Street after a see-saw session plunged in the last 30
mins with Dow Jones losing around 120 points at 12,302.46 while Nasdaq
is down by 43.53 points at 2,280.83.

Indian Markets gave a thumbs down to Tata Motor's acqusition of Jaquar
and Land ROver, rightly so history repeats with Tata Steel facing the
heat when they picked up Corus which later turned out to be a bonanza
for the company. March madness ended for bears in a smoother fashion
not before wrecking the investors portfolios. March witnessed the
midcaps bearing the brunt given the Bear Stearns selling spree adding
to the huge FNO short positions. Next month FNO roll overs indicate no
major crisis at least for the time being. Q4 results will set the tone
for Dalal Street. We believe the negatives are priced in but the
positives will arise only from the exceptional results of the biggies
(not expected though) and an interest rate cut from Mr.Reddy, which
looks nearly impossible due to inflation concerns.

Midcaps are getting due attention as the FNO expiry is done and the
upward movement in these stocks are expected in the next one week or
so as funds and HNI's will try to shop around stocks, looking
attractive at these valuations. Index movements are unlikely to be
huge for the next one week unless there are major cues from the US.
Time to consolidate, churn the portfolios and look forward to
companies unlikely to be impacted by the slow down.
D.Naresh Kumar