Pre-Market report on 26.03.2008

[K.Karthik Raja]

Short Squeeze after a bull breeze?

An unusual session on the wall street with the Dow Jones moving with
in a 100
point range to close down 16 points at 12,532.60 while Nasdaq bucked
the
trend to close up 14 points at 2,341.05. Data continued to disappoint
with
the consumer confidence dipping to the lowest since 1973. Wall Street
is
undeterred by the flow of negative news and tends to factor in all
the
disappointment. Goldman Sachs in an after hour note mentioned that
Wall
Street banks, brokerages and hedge funds may report $460 billion in
credit
losses from the collapse of the subprime mortgage market.

Stronger Yen forced Japanese stock markets on the back foot with
Nikkei
plunging 133 points at 12,611. Japanese export growth jumped to 8.7
percent.

Indian Markets were in the strong clutches of Bulls yesterday from the
word
go. A broad based rally is witnessed with volumes improving. Smallcaps
and
few midcaps tend to react slowly compared to their large cap counter
parts.
F&O expiry on thursday is likely to keep both the bulls and bears at
bay.
With absolutely no direction provided by global cues market is likely
to see
saw. The bulls have the advantage of a the continuation of short
squeeze
while bears have the advantage of subdued volumes. Short selling and
securities lending and borrowing will be starting from April 21. We do
not
see hectic acitivity in this space for some time.

Nifty 4900 calls are witnessing hectic activity pointing to a bullish
fervour. Concentrate on beaten down momentum stocks for good gains
intraday.
Bargain hunting is observed in IT sector. Dish TV is likely to gain
on
reports of 74 percent FDI in DTH.

Market Close Box:
BSE Sensex 16217.49 928.09
NSE Nifty 4877.50 267.65
USD Rs.40.12
Oil Nymex $101.2

K.Karthik Raja