Pre-Market Report: 29.06.2009

[B. Karthick]

Sensex to stay flat, select Midcaps set to gain

Stocks on Dalal Street are set for a good start on the first trading
day of the week. Expect the market to end with a gain of 50 to 100
points for the day. We do not expect run away rally in the indices,
but stock specific gains are not ruled out in the run up to the
budget.

Asian markets have opened flat this morning with the Japanese
benchmark Nikkei, gaining 0.03 percent and South Korea's Kospi gaining
0.2 percent in the first hour of trade. Industrials and Shipping
stocks were active on the news that Japanese industrial output rose
5.9% in May from the previous month.

Expect a flat market in Indian markets, as most of the activity will
be limited to stocks that might benefit from the budget. Tata Motors
is one stock, we are bullish in today's trade, as the news of JLR
entry to India is likely to boost the stock price from current level
of Rs 340. Any positive news on the loan front will be a bonus for
investors betting on this scrip.

It will be interesting to watch Suzlon (Rs 123) today, as markets will
decide if they are going punish the scrip for the quarterly loss, or
reward the company for registering a sales growth of more than 80
percent.Wockhardt Ltd might get some breathing room from its financial
woes, as the company sold its animal health division to a French
company for an undisclosed sum. We like Fortis Healthcare in the
hospital space (Rs 100).

Investors are likely to focus on midcaps as we have not seen any
interest in the index based stocks. The Sensex is likely to hover
around the current levels. Traders can keep a close eye on Vakrangee
Software, Gitanjali Gems, Titagarh Wagons,Adlabs and VIP Ind in
today's trade.

B.Karthick
Research Analyst.