Pre-Market Report: 09.09.2009

[B. Karthick]

It is consolidation time on Dalal Street

Stocks in Indian markets are likely to open higher and are likely to
trade
in a narrow band for the rest of the day. Positive global cues might
boost
the sentiment and lead to higher open. Expect the benchmark index to
gain
less than 0.5 percent for the day.

Stocks rose for the third straight day Tuesday as gold topped $1,000
an
ounce for the first time since February and oil jumped more than $3 a
barrel.The Dow Jones industrial average rose 56.07, or 0.6 percent, to
9,497.34. The index is up 217 points, or 2.3 percent, over three
days.The
broader Standard & Poor's 500 index rose 8.99, or 0.9 percent, to
1,025.39, and the Nasdaq composite index rose 18.99, or 0.9 percent,
to
2,037.77.

As expected Metal stocks took the center stage on the back of
billionaire
Mittal's foray in to India and picking up a stake in Uttam Galva.
Aluminium major Hindalco spike on huge volumes by more than 6
percent, as
investors and fund id up the shares of the company on rumors that
Hindalco
might be an acquistion target for a major international firm.

Stocks in Oil and Gas sector were active yesterday and this is the
sector
to watch out in today's trade as these stocks might rally today as
Crude
futures spiked in the commodity markets. Crude oil futures prices
ended
above $71 a barrel Tuesday after the posting the biggest single-day
rise
since Aug. 19 on a buying spree spurred by weakness in the dollar.
Light,
sweet crude oil futures for October delivery on the New York
Mercantile
Exchange settled up $3.08, or 4.5%. Watch out for refiners and
drilling
stocks for quick gains.

We advise investors to book profits today, as we see a correction in
the
near term. Stay away from the midcaps and speculative second rung
stocks.
We had a brand new list of gainers yesterday, as it has been the case
for
the past few sessions. Auto Ancillary stocks looked interesting on
Tuesday, with ANG Auto, Indo Asian Fuse Gear, Lumax Automotive, Clutch
Auto and Ramakrishna Forgings gained as these stocks played a catch up
to
auto stocks that have had a great run since bottoming out in March. We
like Clutch Auto and Lumax from a trading perspective.

"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"

Key Levels for Today Trade:

NIFTY INDEX Resistance : 4835 / 4860 / 4887 / 4921

NIFTY INDEX Support : 4782 / 4757 / 4732 / 4706 / 4680
Mean : 4808.5

Key Numbers for NIFTY on upside 4835 / 4860 / 4887

Key numbers for NIFTY on down side 4782 / 4732

BANK NIFTY INDEX Resistance: 7797 / 7878 / 7985 / 8039
BANK NIFTY INDEX Support : 7631 / 7546 / 7460
Mean : 7714

Previous Close Box:

BSE Sensex 16016.32 327.20
NSE Nifty 4782.90 102.50
USD Rs.48.95
Oil Nymex $67.95