Pre-Market report on 10.07.2008

[sugu bigu hopes]

Stock to open low on weak global cues
===================================================
Markets might be back to square one in today's trade on the back of
weak global cues and some fresh short selling. Expect the Sensex to
give nearly 2 percent of its value as the mood might turn bearish.

Overnight the US markets experienced a melt down in the final hours of
the trade and the culprit as always if financials.The major indexes
fell more than 2 percent, including the Dow Jones industrial average,
which lost more than 230 points or 2.08 percent and the Nasdaq lost
2.60 percent.Crude remained unchanged at $ 136 on NYMEX at the end of
the day.Asian markets opened in red and might end in with some minor
losses.

Mukesh Ambani-led Reliance Industries has emerged as the top Indian
private company on the latest Fortune 500 Global list, where the
country's presence has grown to seven firms with a debut by Tata
Steel. Another news on Tata Steel as the company, plans to list Tata
Steel Global Resources Ltd, the holding company for its steel and raw
material assets outside India, on the London Stock Exchange (LSE) to
raise funds for acquiring iron ore and coal mines. We see long term
value in the stock and is a good candidate to accumulate in the long
run.

In our view, stocks in midcap space might be resilient to the fall
today as most of the midcaps have not participated in the rally.
Another bright spot in the market is the fertilizer space, which is
showing long term potential as the food prices are expected to
continue their north bound journey in the next 12 months. Beijing
Olympics is prompting Chinese Fertilizer manufacturers to shut down
their plants to minimize pollution from the industrial waste. This
might turn out to be an advantage for the Indian companies in this
space.

Expect a lower open and a minor correction in the market. Do not short
the market at these levels as there is a possibility of pull back
tomorrow. So the markets in the short run are unpredictable and it is
a safe bet not to get caught on the wrong side. Just spot the
opportunities and accumulate wisely.

Suitable stocks for "Intraday"
<ONGC,SATYAMCOMP,HDFC,SBIN,TATAPOWER,SESAGOA,RANBAXY,MARUTI,HEROHONDA,ACC>

Market Close Box
BSE Sensex 13964.26 614.609
NSE Nifty 4157.10 168.55
USD Rs.43.13
Oil Nymex $136.0

N.Sukumar
Research Analyst