Pre-Market report on 17.06.2008

[N.Sukumar]

Sensex to take a breather, Midcaps to outperform
===================================================
Markets might take a pause as and trade flat. Expect the market to
open flat and trade in a narrow band. Select midcaps might continue
their run for the day.

The stocks in Wall Street ended mixed as Oil retreated from a record
high of $ 140 before closing the day at $ 134.61 down 25 cents from
previous close. NASDAQ closed up 0.83 percent or 20.28 points, where
as Dow was marginally down by 38 points or 0.3 percent. Asian stocks
opened lower as investors booked profits after some run lately in
these markets.

Realty looks good on news of Lehman investing another $ 750 million in
Unitech. IT stocks might continue their run as there are no negatives
for the sector in the near term. Reliance Ind plans to borrow $1
billion to fund its expansion projects and the capital raise might be
pumped in to expansion projects in petrochemicals sector.Hindalco
might come up with rights issue at an attractive price, there might be
some action in the counter.Reliance Communications stock, will be dead
for a while as the focus has now turned in to MTN deal taking away
some steam off the stock.

All eyes should be laid on midcaps as we expect this space to
outperform the market as investors have lost their interest on the
large caps and are looking for some quick gains in these turbulent
market conditions. Keep an eye on Finolex Industries, GHCL, Rajesh
Exports, DISH TV and Solar Explosives are some of the stocks to watch
in today's trade.NCL Ind and Anus Labs might prove to be dark horses
as strong operator is witnessed in these scrips


Suitable stocks for "Intraday" today
<INFOSYSTCH,BHARTIARTL,DLF,SESAGOA,HDFCBANK,KOTAKBANK,BOMBDYEING,ADLABSFILM,
LUPIN,EDUCOMP>


Market Close Box
BSE Sensex 15395.82 206.20
NSE Nifty 4572.50 55.40
USD Rs.42.90
Oil Nymex $134.6

N.Sukumar
Research Analyst