Pre-Market Report: 15.07.2009

[B. Karthick]

Bulls set to dominate for the second day in a row

Stocks in India are poised open higher for the second day in a row
after the indices vaulted by more than 3 percent on Tuesday.Expect the
indices to gain more than 250 points or 2 percent for the day as the
buying spree is likely to continue.

Mixed economic data Tuesday reminded investors of the challenges
businesses still face and left the market zigzagging all day. Great
set of numbers from investment bank Goldman Sachs failed to excite the
market. The Dow rose 27.81, or 0.3 percent, to 8,359.49. The Standard
& Poor's 500 index rose 4.79, or 0.5 percent, to 905.84, while the
Nasdaq composite index rose 6.52, or 0.4 percent, to 1,799.73.

Intel Corp. issued a strong profit report and better-than-expected
forecast after the market closed on Wall Street. This will be a give
the much needed boost for the bulls this morning. Midcaps which have
succumbed to heavy selling for the past few weeks have bounce back
with the Midcap index gaining more than 4 percent for the day.

Technology stocks are expected to open firm on the back of good news
from Intel. we have seen a big run up in Realty stocks with the realty
index soaring by 9.5 percent for the day.Realty and banking stocks
will show a sideways movement with minor gains.

We prefer select midcap speculative stocks as these stocks are likely
to play catch up soon. Oil exploration stocks have seen a humungous
run with Aban Offshore gaining more than 25 percent on huge volumes as
some prominent bears in the market were caught offgaurd in this stock.
Hind Oil explo caught the same fever vaulting by 20 percent. Stay from
these counters for now.

Bulls are likely to continue their domination for the second
consecutive day in a row. concentrate on IT and midcap stocks.Day
traders could look at stocks like Polaris Rs 91, which is likely to
score a century soon.

B.Karthick
Research analyst