Pre-Market report on 31.07.2008

[B. Karthick]

Rally to continue ahead of the F&O Expiry
===================================================

Stocks in Mumbai are likely to open inch higher on opening bell as the
mood around the global markets still remains positive. Do not expect a
big rally as there might be some consolidation after a big day of
gains yesterday.

U.S. stocks rallied, led by the biggest gain in energy shares after
oil jumped by more than $4 a barrel and a private report showed an
unexpected increase in jobs. Financial shares finished higher after
the Federal Reserve extended an emergency lending program and the
Securities and Exchange Commission prolonged a ban on a type of short
sale. The Dow gained 1.63 percent where as the Nasdaq finished up 0.44
percent. Asian stocks opened up higher led by commodity producers
after oil climbed more than $4 a barrel and prices of metals advanced.

Stocks like Cairn Energy might see some demand as the Oil prices
started climbing back. There major banks have raised their prime
lending rate in response to the rate hike by the RBI on tuesday. IT
stocks might fare well as the valuations are attractive. Select stocks
might show some huge volatility ahead of the F&O expiry. Things look
bullish for the time being as August Nifty is trading at a premium to
the spot.

Coming to the stock specific moves Assam Company,Oswal Chemicals,
Adlabs, HEG, Nagarjuna Constructions and Bajaj Hindustan looks good
for today's trade. To wrap up expect a minor up move in the indices as
most of the short covering has happened yesterday ahead of the expiry
today. So things look bullish in the short term and will favor the
bulls for the time being.

Suitable stocks for intraday trading:
<LT, RCOM, RANBAXY, CAIRN, SESAGOA, SATYAMCOMP, HDIL, SUZLON, PNB,
SUNPHARMA>

Market Close Box:
BSE Sensex 14287.21 495.67
NSE Nifty 4313.55 123.70
USD Rs.42.47
Oil Nymex $126.7

B.Karthick
Research Analyst.