Pre Market Report - 30.07.2008

[K.Karthik Raja]

Crude continues to fall, Bulls to stand tall
Jul 30, 2008 | 6:43 AM

Stocks are expected to rebound after a bad day on the bourses
yesterday. Markets are likely to digest the news of interest rate hike
and move on from here on. Positive global cues should improve the
sentiment and might help the indices recover at least half of the
losses it has experienced on Tuesday.

Wall Street shot up convincingly after a incurring sharp losses on
Monday. Crude oil prices sank $2.54 to $122.19 a barrel on the New
York Mercantile Exchange, extending their two-week-long retreat from
record highs above $147. The consumer confidence numbers came in
better than expected and this boosted the sentiment. The Dow moved up
by more than 2.39 percent and the technology based Nasdaq added 2.45
percent. Asian indices opened higher backed by strong buying all over
as Oil retreated from its lows.

Investors would be better off to stay away from Banking and Realty
sectors and concentrate on FMCG, Engineering and PSU stocks. IT stocks
have started looking compelling now, after undergoing good amount of
correction. Midcaps undoubtedly will dominate the market this week as
investors are slowly finding lost confidence in this space.

Some of the stocks that look interesting in today's trade are Punj
Lloyd, Bag Films, TV Today Networks and Pyramid Saimira. Some of the
new listings like Tulsi extrusions and Sita Shree foods might bounce
back as they have been beaten down and are trading below their IPO
price. HFCL might be a dark horse ahead of the Q1 numbers which are
expected to improve when compared to the previous quarter. Today
definitely will be a good day to trade for short term traders as the
mood is upbeat and is likely to continue for the rest of the week.

Previous Market Close:

BSE Sensex 13791.54 -557.57
NSE Nifty 4189.85 -142.25
USD Rs.42.23
Oil Nymex $123.2

K.Karthik Raja
Research Analyst.