Pre-Market Report: 20.08.2009

[B. Karthick]

Sensex makes another attempt at 15,000 mark

Stock market indices on Dalal Street are likely to open higher after
falling more than 1.5 percent on Wednesday. The Sensex will make
another attempt to close above 15,000 mark. Expect the benchmark index
to gain more than 200 points as selling pressure might abate after
three days of volatility.

On Wall Street, stock extended a streak of erratic trading Wednesday,
rebounding from early losses and rising moderately after a drop in oil
inventories lifted hopes for an economic recovery. The Dow Jones
industrials rose 61.22, or 0.7 percent, to 9,279.16. The Standard &
Poor's 500 index rose 6.79, or 0.7 percent, to 996.46, while the
Nasdaq composite index rose 13.32, or 0.7 percent, to 1,969.24.

Oil and Gas stocks were hard hit after oil plunged yesterday. This is
our favorite sector for the day as the price of oil spiked today. Oil
closed above $72 a barrel on Wednesday after data suggested a recovery
in U.S. oil demand, which came as a surprise. Watch out for stocks
like Cairn Energy, ONGC and Oil exploration space.

As expected lot of second rung stocks were in the limelight. Megasoft
and Sonata Software were beneficiaries of demand in the midcap IT
stocks. Telecom related stocks like Take Solutions, Tulip Telecom were
locked in upper circuit on heavy volumes.

Traders could also look at power sector as the sector might be in
focus with Adani Power on the deck to list on the bourses today on BSE
and NSE. We expect the stock trade in a band of Rs 130 - Rs 140. GVK
Power at Rs 46 is our favorite in this space. We like Pharma names
like Venus Remedies ahead of the quarterly numbers and last but not
the least Panacea Biotech at RS 174 looks attractive after bagging Rs
1,000 order from UNICEF. A stock worth looking at even in an uncertain
market.


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

Key Levels for Today Trade:

NIFTY INDEX Resistance : 4471 / 4502 / 4523 / 4564 / 4585
NIFTY INDEX Support : 4457 / 4424 / 4387 / 4374 / 4348 / 4313
Mean : 4464

Key Numbers for NIFTY on upside -----
Key numbers for NIFTY on down side -----

BANK NIFTY INDEX Resistance: 7291 / 7383 / 7469 / 7563
BANK NIFTY INDEX Support : 7102 / 6991 / 6881 / 6773
Mean : 7196.5

Previous Close Box:

BSE Sensex 14809.64 -225.62
NSE Nifty 4394.10 -64.80
USD Rs.48.74
Oil Nymex $72.18