Pre Market Report - 20.05.2009

[B. Karthick]

Sensex to stay flat, Midcaps to run the show

The stock market indices on Dalal Street are likely to correct and
move sideways, as bulls might take a breather after a huge run up for
the past 5 sessions. Expect the Sensex to trade in a narrow band of
nearly 100 to 150 points. Midcaps are likely to dominate as investors
are likely to bid up shares that have not participated in the rally.

Stocks on Wall Street pared morning gains as disappointing housing
data dampened investor sentiment. The Dow Jones industrial average
fell 29.23, or 0.3 percent, to 8,474.85. The Standard & Poor's 500
index fell 1.58, or 0.2 percent, to 908.13, while the Nasdaq composite
index rose 2.18, or 0.1 percent, to 1,734.54.

Realty stocks dominated the street on Tuesday as there was lot of fund
buying and short covering in Infra related stocks.The Realty index
gained more than 12 percent and it is time to book partial profits in
these stocks at current levels. Banking and Consumer stocks also made
to the gainers list.

Investors are advised to focus on IT and FMCG sectors, as they have
not participated in yesterday's rally. Investors could look at midcap
IT stocks like Aptech, NIIT Tech, Rolta and Polaris for some quick
gains. Index based heavy weights are expected to underperform in the
next few sessions, as investors might focus on midcap stocks for
speculative gains.

SREI Infra looked explosive yesterday with a whopping 30 percent gain
at Rs 66. We advise investors to buy this stocks if it corrects back
to the Rs 55 level, as there is some more room for upside in this
scrip.We like Crompton Greaves, Mundra Port, Gammon Infra and shipping
stocks like Varun Shipping for today's trade.

B.Karthick
Research Analyst.