Pre-Market report on 18.06.2008

[B. Karthick]

Bulls look to maintain the momentum
Jun 18, 2008

The Indian markets look to decouple for the first time in nearly 2
months as
the indices look resilient to the any kind of selling that might arise
in
today's trading. We expect the indices to cross the 15,750.00 today
and so
we are looking at a 0.3 to 0.5 percent gain today.

Stocks fell today in Wall Street as the Tuesdays data on producers
prices
for may jumped nearly 1.4 percent for the month of may fanning fears
of
inflation taking a toll on the economy that is already hampered by
the
subprime crisis and spike in crude oil. The Dow fell nearly 0.89
percent or
108 points to close the day at 12,160.30 and the NASDAQ closed down
17
points or 0.69 percent to end the day down by 17 points at 2,457.73.
Asian
stocks are up in early trade as the Crude oil slipped from its highs
extending its losing streak for the fourth day in a row.

Yesterdays rally was driven by news of healthy advance tax numbers as
the
corporates are expected to report better than expected numbers for the
Q1
from the corporates. The fall in the crude prices is seen as another
trigger
for the falling markets. The only dampener in the short run might be
another
round of rate hike from 8 to 8.25 percent in the next 3- 4 weeks.
Ashok
Leyland see some action on the news of acquisition and also on
speculation
that the company might offer stake to its current share holders in the
LCV
JV with Nissan. Some midcap IT stocks might see action as IBM picked
up
stake in KLG Systel.

Midcaps for the past 2 sessions have gained in a random fashion with
the
exception of GHCL and Vaibhav Gems which have been rising from the
past 3-4
sessions. We expect some of the midcaps that have not participated in
the
recovery to take the lead. We like Sugar, edible Oil and select
Fertilizer
and Chemical stocks to take the lead. Overall a flat market with a
positive
inclination dominated by the stocks in the midcap space.

Stocks suitable for intraday trading:
<RELIANCE, ICICIBANK, RANBAXY, BHEL, HDIL, JINDALSTEL, ADLABSFILM,
MCDOWELL-N, NATIONALUM, TATATEA>

Market Close Box:

BSE Sensex 15696.90 301.08
NSE Nifty 4653.00 80.50
USD Rs.42.92
Oil Nymex $134.0

B.Karthick,
Research Analyst.