Pre-Market Report - 02.06.2008

[B. Karthick]

Technology to take the charge

Dalal Street looks to for a tick up on Monday after a decent close
last week. Technically Nifty is looking for an up move and a break
above 4910 will take Nifty to 5200 levels. So we are looking for gains
of 1.5 to 2 percent on the Nifty to break the key resistance and a
short term bull market. Overnight the US markets ended mixed with Dow
ending flat and NASDAQ closed in the positive territory gaining 0.6
percent at 2,522.66. Asian markets look for a flat to a negative open
on news that the manufacturing in China, expanded at a slower pace in
May as export growth weakened and also higher inflation numbers in
South Korea might dampen the sentiment.

Sterlite Industries ( Ltd), the nation's biggest copper and zinc
producer, agreed to buy assets of bankrupt Asarco LLC for $2.6
billion. This acquisition will strengthen Vendanta's position among
major copper producers in the world. Meanwhile Lehman raised flag over
the weekend that the foreign inflows in to the Indian markets might
slow down sighting slowing economic growth and rising inflation. Our
favourites Technology and Pharma sectors
are expected to outperform other sectors in the next few weeks.

Some of the stocks that are poised for an upmove today are GSS
America, Balaji Tele, Jayswal Neco, Northgate Technologies. Midcap IT
space is the one to watch out in today's trade. Closely watch out for
a close above 4910 for the Nifty in the next 2 days

Market Close Box:
=================
BSE Sensex 16415.57 99.32
NSE Nifty 4870.10 34.80
USD Rs.42.59
Oil Nymex $127.3

B.Karthick,
Research Analyst.