Pre Market Report - 25.03.09

[K.Karthik Raja]

Pre Market Report

Mar25, 2009

Correction on cards, as bulls take a breather
Mar 25, 2009

Stocks on Dalal Street might correct on opening bell, as bulls are
likely to take a breather in what could be seen as a positive week for
the Sensex. Expect the Sensec to correct 100 points or nearly a
percent for the day. Stocks in Asia are likely to open in red in the
first hour of trade as investors took some money off the table from
Commodity and financial stocks.Wall Street gave up some gains after a
sharp rally on Monday, as investors booked some profits.The Dow fell
115.89, or 1.5 percent, to 7,659.97. The Standard & Poor's 500 index
fell 16.57, or 2 percent, to 806.35, and the Nasdaq fell 39.25, or 2.5
percent, to 1,516.52. Banking showed some strength in a sideways
market and might correct today as the move has been vertical in
banking related stocks for the past few sessions. We advice medium
term investors to hold these stocks as there is still some room for
these stocks after a small correction. ICICI Bank remains our favorite
and is a good short term bet after a slight correction today. Metals
looked weak yesterday will some selling pressure in stocks like
Hindalco. But we see this sector outperforming other sectors and a
position in quality metal stocks is advisable.As expected the stock of
Gokaldas Exports scored a hattrick as the stock was locked in 20%
circuit for the third consecutive day. We have seen some second and
even third rung companies have started moving higher and it is
advisable for investors to book profits and gte out of these stocks.
Stocks like Archies Ltd, Prithvi Info, Energy Development, Austral
Coke are some of the stocks where one could look to exit on rallies.

Previous Close Box :

BSE Sensex 9471.04 47.02
NSE Nifty 2938.70 - 1.20
USD Rs.50.31
Oil Nymex $53.53

Research Desk.