Pre-Market Report - 26.02.2008

[Ravi Chandran.K]

India Stocks Outlook: Up on firm global mkts; railway budget eyed
Tuesday, Feb 26

MUMBAI - Key share indices are likely to extend gains today on firm
cues from overseas markets and amid expectations of a people-friendly
railwaybudget.
Union railway minister Lalu Prasad Yadav will present the railway
budgetfor 2008-09 (Apr-Mar) today at noon.
Unless there are some negative surprises from the railway budget,
market (Nifty) should remain range-bound between 4900-5400 before the
Union budget
(Friday).Investors are refraining from taking a position with expiry
(of
February derivatives contract) falling only one day before the (Union)
budget. The U.S. market ended up over 1% Monday after Standard &
Poor's retained top credit ratings for bond insurers Ambac Financial
and MBIA, easing concern global economic growth will slow on new
credit losses.
Key Asian markets were up around 1% taking cues from the U.S.
market. On Monday, Sensex ended at 17650.57, up 301.50 points, or
1.7%, from Friday. Nifty ended at 5200.70, up 89.95 points or 1.8%.
Nifty faces immediate resistance at 5248, and has support at 5138
and then 5096. Nifty is likely to trade in a range of 5100-5300 and
will
continue to face selling pressure near 5250-levels.
Cement shares are likely to remain in focus amid expectations of a
cut in freight rates. Grasim Industries, in particular, looks very
promising.We expects the stock to attain a target of 3,000-3,050
rupees in the next few sessions.
Bank shares continue to look weak on charts.Reliance Power may also
extend gains.However, the stock will continue to face selling pressure
above 460 rupees.

Ravichandran K.