Pre Market Report : 09.06.2008

[K.Karthik Raja]

"No stopping" : Markets expected to continue their southward journey
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Stocks are headed for a lower open to start the week as the spike in
crude
oil has created ripples in the global markets over the weekend.The
Sensex
might test 15,250 level from which might see a bounce intraday.

US stocks took a beating on Friday as Oil spiked as mush as $ 9 to
reach the
$ 140 levels spooking the investors.Hopeless Job less claims data came
in as
a double whammy, which resulted in a steepest fall in 15 months for
the Dow
Jones Industrials. On the currency front Dollar started loosing its
sheen
after a nice run up in the last 45 days. Asian markets opened in deep
red at
the time of this review. Nikkei opened down by 2.2 percent and is
currently
trading at 14,157.44.

ADAG group is the talk of the town now as there are rumors in the
market
that Anil is keen to pick up stake in Spice Jet and is giving a tough
fight
in the three way battle between Jet, Kingfisher and ADAG. The other
set of
news is in the telecom sector where Reliance Communication is expected
to
announce a share swap deal with South Africa's major telecom operator
MTN,
which would result in Reliance Communications becoming a subsidiary.
This
will result in Anil Ambani owning nearly 30 percent of the shares in
MTN and
eventually its largest share holder. We will have to wait and see how
the
market reacts to the deal. We believe its is a big positive for the
business, but a lot depends on how the swap is structured and the
pricing of
the open offer.

Cairn India might be the stock to look on the upside as the stock
usually
moves in the direction of the Crude prices. The other stock that might
be
interesting for the next few days would IFCI ahead of the meeting on
narrowing down on a strategic buyer.Every one is expecting a black
Monday
and Indian indices to mimic the Dow. The advise for investors to stay
away
and the strategy for the intraday traders is to buy the dip in some
select
stocks around 15,250- 15,300 levels for some quick profits intraday.
Just
play the bounce from the bottom and exit with minor profits for the
day.
Overall expect a moderate Monday market correction

Market Close Box:
BSE Sensex 15572.18
NSE Nifty 4627.80
USD Rs.42.79
Oil Nymex $138.5

K.Karthik Raja