PRE-MARKET REPORT - 28.05.2008

[K.Karthik Raja]

F&O expiry to weigh on Indian Markets
May 28, 2008

US markets jumped on the sweet news of decline in the crude oil today.
Crude
closed at 128.85 USD a barrel, down by 3.34 dollars, recording its
weekly
low on the NYMEX. Dow Jones closed the day at 12,548.35, up 68 points
and
NASDAQ ended the day up 36.57 points at 2,481.24. Wall street appeared
to
have neglected the following bad news of 16-year low consumer
confidence and
homes prices dropping by 14.4% in the year through March.

Lack of conviction in the domestic market is keeping the Indian
markets
lacklustre and trending down. F&O expiry is just adding up to to the
nervousness among the investors and few HNI's are taking advantage of
the
situation taking short positions in few F&O counters. Unconfirmed
reports
say huge bullish positions were built on the long side in Nifty for
the next
month.

Decent results by Neyveli, Opto Circuits and Tata Cofee

Neyveli Lignite posted a nearly 14-fold jump in its fourth quarter
net
profit at Rs 384.68 crore compared with Rs 26.40 crore last year while
Opto
Circuits (India), a manufacturer of medical diagnostics, reported 43.4
per
cent rise in its consolidated net profit at Rs 34.76 crore for the
fourth
quarter ended March 2008. Net sales surged by 43 per cent to Rs
120.52
crore. The company also declared bonus in the ratio of 7:10

Tata Coffee, boosted by higher sales of instant coffee and higher
coffee
realisations, has reported 70 per cent jump in net profit at Rs 17.29
crore
for the fourth quarter ended March 2008, compared with Rs 10.17 crore
in the
corresponding quarter of the previous year.

We expect the market to trade in a band with a positive bias.
Concentrate on
midcaps to avoid F&O pressure

Today Stocks suitable for intraday

<OIL stocks,neyvelilig,relcapital,cairn,ster,jswsteel,adlabsfilm>

Market Close Box:

BSE Sensex 16275.59 -72.91
NSE Nifty 4859.80 -15.25
USD Rs.42.89
Oil Nymex $128.8

K.Karthik Raja