Pre-Market report on 17.04.2008

[Sukumar]

Bulls ready to lauch a staunch attack
====================================================

US Markets jumped big time on wednesday with a Dow clocking a huge
gain of
256.80 points to close at 12,619.27 while Nasdaq closed up 64 points
to end
at 2,350.11. IBM and EBay announced Q1 results after market hours.
Both the
companies beat the street's estimates. Majority of the companies that
declared numbers till date on Wall Street managed to come out with
good
numbers. Looking at the results the slow down in the economy is
hardly
visible.

Thursday morning Japanese markets welcomed the overseas positive cues
to gain
280 points in the initial trade. Indian markets cannot expect better
global
cues though we failed to capitalize on yesterday's initial trades. But
today
we might witness the decisive break out on both the indices. Nifty is
likely
to break out positively on a closing basis at 4947.

Midcap stocks continued to perform well especially the IT pack given
the
strong boost from IT companies all over the world. Mindtree
Consulting
declared outstanding numbers yesterday and the stock is likely to run
up
further.Aztech software once again declared dismal numbers with a 54
percent
fall in netprofit. On a sequential quarter-on-quarter, Aztecsoft’s
bottom
line grew by 44 per cent, while its top line by 8.5 per cent. The
stock can
be avoided and the management failed to take this company to the next
level.
Rolta will be announcing numbers today and we are positive about this
company.

Power Finance Corporation net profit fell 20 percent because of
higher
borrowing costs and a one-time gain recorded last year. Orchid
chemicals
continued to witness huge buying, this time from funds like Maquire
Bank and
Merryl Lynch. We are not sure whether this buying is to counter
Solerex
creeping acquisition or looking for more value. NO doubt the company
will do
wonders in the future, the steep stock price keeps the risk reward
ratio very
high.

Yesteday's trade witnessed Textile stocks like Arvind Mills, Alok
Industries,
SKumars Nationwide pulling back from the lows. Though there is not
much of a
fundamental reason behind the moves, it is adviced to ride the run for
the
next couple of days.

Indian Markets are likely to open on a high note today and unlike
yesterday
the Indices are expected to close on a strong note. Have a great
trading day.

Market Close Box
BSE Sensex 16244.19 90.53
NSE Nifty 4887.30 7.65
USD Rs.39.96
Oil Nymex $114.9

N.Sukumar
Research Analyst