Pre-Market report on 26.06.2008

[Naresh kumar]

Markets to trade in a narrow band, unless F&O expiry shows it's magic
===================================================
After putting on a good show yesterday against the rate hike, the
markets
are expected to consolidate or do nothing ahead of the expiry. Expect
the
Sensex to hold the 14,000 level and probably trade in a narrow band of
1
percent either ways.

Overnight the stocks in US ended on a positive note, as the Dow
marginally
ended above the dotted line with a 4 point gain and the NASDAQ gained
32
points or 1.39 percent. Earlier today the Federal Reserve left
interest
rates unchanged and issued a mixed assessment of the economy. Asian
markets
opened flat and look indecisive on lack of any triggers that could
influence
an up move.

The valuations in Telecom space might undergo a rerating on the back
of the
Idea - Spice deal. we have already seen an up move in the big boys,
Bharti
and Relcom after the Spice acquisition was announced. Analysts believe
that
its a good deal for Idea, and we do not think so as it has come at the
wrong
time and at a higher price. However the Idea had made up the hole by
an
offering a stake to the Malaysian firm TM International Bhd at a price
of Rs
156.

It will be interesting to watch the final hours of the trade on the
eve of
F&O expiry as analysts expect huge rollovers for the coming month.
The
market breadth has improved considerably and things are definitely
getting
better and stock specific moves could be expected going forward. There
are
rumors going around in the market that Radico Khaitan the maker of
8PM
whisky might be an acquistion target. The stock rose more than a 13
percent
on 3 times its usual volumes.GHCL, Gujarat Sidhee and Sasken are some
of the
stocks that look technically strong and would be worth keeping an eye
on.

Suitable Stocks For "Intraday" Today
<INFOSYS,BHEL,CAIRN,GAIL,SESAGOA,JINDALSTEL,ADLABSFILM,TATACHEM,NATIONALUM,
MARUTI>

Market Close Box

BSE Sensex 14220.07 113.49
NSE Nifty 4252.65 61.55
USD Rs.42.82
Oil Nymex $134.5

D.Naresh Kumar
Research Analyst