Pre-Market report on 20.06.2008
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N.Sukumar
Jun 20, 2008, 12:16:58 AM6/20/08
to Kences1
Stocks look up as Oil slides down
===================================================
Stocks look up as the the price of crude retreated, unless the
political drama at the center takes a toll on the indices . The Sensex
is likely to hold the 15,000 levels with the exception of some news
flow on the PM quitting or mid-term elections effecting the mood in
the markets.
Crude oil fell more than $4 a barrel, the biggest drop in 11 weeks, on
speculation demand will decline after China said it will raise fuel
prices starting tomorrow.China raised retail gasoline and diesel
prices by up to 18 percent. Crude-oil futures for July delivery fell
$4.75, or 3.5 percent, to $131.93 a barrel on the New York Mercantile
Exchange. Stock in Wall Street recovered from early jitters to end the
day wit gains. Techs fared well when compared to the industrials as
the NASDAQ closed up by nearly 1.33 percent or 32 points at 2,462.06,
where as the DOW closed up by 0.3 percent to end at 12,063.09. Asian
markets with the exception of Shanghai index might follow the up move
in the US markets.
Things look chaotic in the domestic market as things look up as
concerns of rising inflation might ease on the fall in crude prices.On
the flip side there is turmoil in the center on the nuclear power
deal, which might effect the sentiment. We might see a bounce in
Realty and banking sector today, but we feel that it is a good idea t
stay away from these sectors for now. Investors should look at taking
some positions in traditional cyclicals. Especially Sugar, Paper, Tea
sectors along with media might not be a bad idea. A dark horse in this
scenario might be Aviation, as this sector will be a primary
beneficiary of the fall in Oil prices, but this bet is advisable to
investors with high risk appetite.
Midcaps have been resilient in the current down turn and are expected
to maintain their dominance over the large caps in the near term. The
stocks to watch in today's trade would be Binani Industries, GAIL,
Tata Power and D-Link India. Some of the speculative bets include
Ashtavinayak Cine, Ramsarup Ind,Kohinoor Foods and Renuka Sugars.
Overall a upbeat market unless some political news comes out as a
dampener
Suitable Stocks for "Intraday" today
<RELIANCE,CAIRN,ONGC,DLF,HDFC,ABAN,ADLABSFILM,LUPIN,TATAMOTORS,DIVISLAB>
Market Close Box
BSE Sensex 15087.99 -334.319
NSE Nifty 4504.25 -78.15
USD Rs.42.93
Oil Nymex $131.9
N.Sukumar
Research Analyst
===================================================
Stocks look up as the the price of crude retreated, unless the
political drama at the center takes a toll on the indices . The Sensex
is likely to hold the 15,000 levels with the exception of some news
flow on the PM quitting or mid-term elections effecting the mood in
the markets.
Crude oil fell more than $4 a barrel, the biggest drop in 11 weeks, on
speculation demand will decline after China said it will raise fuel
prices starting tomorrow.China raised retail gasoline and diesel
prices by up to 18 percent. Crude-oil futures for July delivery fell
$4.75, or 3.5 percent, to $131.93 a barrel on the New York Mercantile
Exchange. Stock in Wall Street recovered from early jitters to end the
day wit gains. Techs fared well when compared to the industrials as
the NASDAQ closed up by nearly 1.33 percent or 32 points at 2,462.06,
where as the DOW closed up by 0.3 percent to end at 12,063.09. Asian
markets with the exception of Shanghai index might follow the up move
in the US markets.
Things look chaotic in the domestic market as things look up as
concerns of rising inflation might ease on the fall in crude prices.On
the flip side there is turmoil in the center on the nuclear power
deal, which might effect the sentiment. We might see a bounce in
Realty and banking sector today, but we feel that it is a good idea t
stay away from these sectors for now. Investors should look at taking
some positions in traditional cyclicals. Especially Sugar, Paper, Tea
sectors along with media might not be a bad idea. A dark horse in this
scenario might be Aviation, as this sector will be a primary
beneficiary of the fall in Oil prices, but this bet is advisable to
investors with high risk appetite.
Midcaps have been resilient in the current down turn and are expected
to maintain their dominance over the large caps in the near term. The
stocks to watch in today's trade would be Binani Industries, GAIL,
Tata Power and D-Link India. Some of the speculative bets include
Ashtavinayak Cine, Ramsarup Ind,Kohinoor Foods and Renuka Sugars.
Overall a upbeat market unless some political news comes out as a
dampener
Suitable Stocks for "Intraday" today
<RELIANCE,CAIRN,ONGC,DLF,HDFC,ABAN,ADLABSFILM,LUPIN,TATAMOTORS,DIVISLAB>
Market Close Box
BSE Sensex 15087.99 -334.319
NSE Nifty 4504.25 -78.15
USD Rs.42.93
Oil Nymex $131.9
N.Sukumar
Research Analyst
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