Pre-Market report on 30.06.2008
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N.Sukumar
Jun 30, 2008, 12:01:46 AM6/30/08
to Kences1
Markets expected to trade in a tight band
===================================================
Stocks look to to recover on Monday from the steep correction we have
witnessed in the past few weeks. The Sensex is expected to be flat
with a positive bias, although the trend remains bearish for the
immediate term.
Asian stocks had a good start for the week as the MSCI Asia Pacific
index gained nearly 0.2 percent in the first hour of trade, where as
the Nikkei is trading flat.US markets declined by nearly percent on
Friday on concerns of more subprime- related writedowns at major
banks, Meanwhile the Crude continues to trade at record levels.
There is a strong possibility that the central bank raises its over
night leaning rate by nearly 25 basis points in the next fortnight, if
the current conditions on the inflation prevail. Banking and Realty
are the sectors which one needs to avoid in the current market. We are
already seeing pressure on realtors on pricing front as the prices of
raw materials like cement have gone up a lot. Major realtors in the
big city plan on raising the prices on current projects to improve
their profitability.
On the Banking front the valuations are getting attractive as ICICI,
HDFC hit their 52 week lows and most of the private banks have already
fallen below their 52 week lows. There might some more correction due
in the banking but it is not a bad idea to slowly accumulate the likes
of ICICI and SBI in small lots. Tata Motors has been the worst
performers in the BSE-30 index for the past one year. The stock has
lost nearly 34 percent in the past year on concerns of slowing sales
and equity dilution from acquisition from Ford. We expect Mahindra to
make a bid for Hummer brand SUV from General Motors of USA. The
company is mulling to launch 'Scorpio' SUV in the US soon. The market
currently lacks the momentum or any triggers that might propel the
Sensex from current levels. So we might not see huge move either ways.
We expect a lack lustre day of trading with the index trading in a
narrow band.
Suitable stocks for "Intraday" today
<RELIANCE,RELCAPITAL,BHARTIARTL,UNITECH,CAIRN,RANBAXY,TCS,JINDALSTEL,CIPLA,
LITL>
BSE Sensex 13802.22 0.00
NSE Nifty 4136.65 -179.20
USD Rs.42.79
Oil Nymex $140.2
N.Sukumar
Research Analyst
===================================================
Stocks look to to recover on Monday from the steep correction we have
witnessed in the past few weeks. The Sensex is expected to be flat
with a positive bias, although the trend remains bearish for the
immediate term.
Asian stocks had a good start for the week as the MSCI Asia Pacific
index gained nearly 0.2 percent in the first hour of trade, where as
the Nikkei is trading flat.US markets declined by nearly percent on
Friday on concerns of more subprime- related writedowns at major
banks, Meanwhile the Crude continues to trade at record levels.
There is a strong possibility that the central bank raises its over
night leaning rate by nearly 25 basis points in the next fortnight, if
the current conditions on the inflation prevail. Banking and Realty
are the sectors which one needs to avoid in the current market. We are
already seeing pressure on realtors on pricing front as the prices of
raw materials like cement have gone up a lot. Major realtors in the
big city plan on raising the prices on current projects to improve
their profitability.
On the Banking front the valuations are getting attractive as ICICI,
HDFC hit their 52 week lows and most of the private banks have already
fallen below their 52 week lows. There might some more correction due
in the banking but it is not a bad idea to slowly accumulate the likes
of ICICI and SBI in small lots. Tata Motors has been the worst
performers in the BSE-30 index for the past one year. The stock has
lost nearly 34 percent in the past year on concerns of slowing sales
and equity dilution from acquisition from Ford. We expect Mahindra to
make a bid for Hummer brand SUV from General Motors of USA. The
company is mulling to launch 'Scorpio' SUV in the US soon. The market
currently lacks the momentum or any triggers that might propel the
Sensex from current levels. So we might not see huge move either ways.
We expect a lack lustre day of trading with the index trading in a
narrow band.
Suitable stocks for "Intraday" today
<RELIANCE,RELCAPITAL,BHARTIARTL,UNITECH,CAIRN,RANBAXY,TCS,JINDALSTEL,CIPLA,
LITL>
BSE Sensex 13802.22 0.00
NSE Nifty 4136.65 -179.20
USD Rs.42.79
Oil Nymex $140.2
N.Sukumar
Research Analyst
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