Pre-Market Report - 28.02.2008

[K.Karthik Raja]

Subdued US Market, Bears are the likely target
Feb 28, 2008 | 5:20 AM IST

Bernake came into the resuce of the wall street after a down opening
yesterday. The Fed chief re-iterated that inflation concerns will not
stand in front of another rate cut. Dow Jones ended the day up 9
points at 12,694 and Nasdaq up 8.7 points at 2,353. This is the fourth
consecutive positive closing for the Dow Jones while a hatrict for the
Nasdaq.

Indian Markets are not able to latch on to the early gains built
yesterday due to credit concerns and negative news flow from the
Europe. When the big brother is able to withstand the negative news
why the emerging market like India is looking at every oppurtunity to
fall. It once again nails down to the huge short positions built up by
the FII's for the Feb Series. There are reports in the market that
shorts were rolled over to the March Series. We believe Budget will
signal the end of the bearish saga haunting from the last 45 days.

Markets are likely to open in a subdued fashion only to pick up later
in the day. Except a 200-300 point gain today on the BSE Sensex.
Momentum Calls like OnMobile, KS Oils and McLeod Russel, Dhanus Tech
tasted success while few others are on the way to reach targets.

We again re-iterate that fundamentals cannot be over shadowed for
longer period and many stocks are still trading at attractive
valuations. The hang over will be over soon and FM is likely to be the
torch bearer for the next rally.

Market Close Box:
BSE Sensex 17825.99 19.80
NSE Nifty 5268.40 -1.65
USD Rs.39.73
Oil Nymex $102.0

K.Karthik Raja
www.kences1.blogspot.com