Pre-Market Report - 05.06.2008
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K.Karthik Raja
Jun 5, 2008, 12:12:10 AM6/5/08
to Kences1
"Some more" or "No more" : Correction
Jun 05, 2008
The stock market indices after a carnage yesterday will start trading
on
Thursday with hopes of recovery which seems to be a distant hope in
looking
at the existing market conditions.
Overnight the US markets ended relatively in a better shape than the
Indian
markets. The technology based NASDAQ gained nearly a percent to close
the
day at 2503 where as the DOW ended nearly flat for the day.Investor
sentiment improved in the earlier part of the day as the price of oil
declined further by nearly $2 to end the day at $122.30. But the
indices
gave up their gains as bad news about financials continues haunt the
market.The Asian markets are expected to correct a bit after gaines in
the
past three sessions.
No doubt the oil price hike is going to increase the inflation to a
double
digit rate. The fall in the market looks a bit exaggerated as stocks
fell as
if it was an unexpected event. News of a fuel price hike was making
rounds
in the market for the past one month and was not totally a shocker.
The
sentiment in the market is so low, that any kind of bad news will
cause a
major fall in the indices.
We have seen broad based selling in all sectors yesterday and Realty,
Metal
and Power were the worst effected. It is not a bad idea to stay away
from
the markets for this week. Although we reiterate that the long term
fundamentals of the markets are intact. Long term investors have got
nothing
to lose, if they are looking from 18 month perspective. The key is to
stay
invested and do some bottom fishing in companies with strong
fundamentals.
For investors who would like to stick their neck out and buy this
bottom, we
would suggest sectors like IT, Pharma and Media which we think will
weather
the storm in the case of a recession
Today stocks suitable for Intraday.
<Reliance,Rpl,Dlf,Infosystch,Rcom,Hindpetro,Lt,Bhartiartl,Jpassociat ,Relcapital>
Market Close Box:
BSE Sensex 15514.79 -447.77
NSE Nifty 4585.60 -130.30
USD Rs.42.63
Oil Nymex $122.3
K.Karthik Raja,
Jun 05, 2008
The stock market indices after a carnage yesterday will start trading
on
Thursday with hopes of recovery which seems to be a distant hope in
looking
at the existing market conditions.
Overnight the US markets ended relatively in a better shape than the
Indian
markets. The technology based NASDAQ gained nearly a percent to close
the
day at 2503 where as the DOW ended nearly flat for the day.Investor
sentiment improved in the earlier part of the day as the price of oil
declined further by nearly $2 to end the day at $122.30. But the
indices
gave up their gains as bad news about financials continues haunt the
market.The Asian markets are expected to correct a bit after gaines in
the
past three sessions.
No doubt the oil price hike is going to increase the inflation to a
double
digit rate. The fall in the market looks a bit exaggerated as stocks
fell as
if it was an unexpected event. News of a fuel price hike was making
rounds
in the market for the past one month and was not totally a shocker.
The
sentiment in the market is so low, that any kind of bad news will
cause a
major fall in the indices.
We have seen broad based selling in all sectors yesterday and Realty,
Metal
and Power were the worst effected. It is not a bad idea to stay away
from
the markets for this week. Although we reiterate that the long term
fundamentals of the markets are intact. Long term investors have got
nothing
to lose, if they are looking from 18 month perspective. The key is to
stay
invested and do some bottom fishing in companies with strong
fundamentals.
For investors who would like to stick their neck out and buy this
bottom, we
would suggest sectors like IT, Pharma and Media which we think will
weather
the storm in the case of a recession
Today stocks suitable for Intraday.
<Reliance,Rpl,Dlf,Infosystch,Rcom,Hindpetro,Lt,Bhartiartl,Jpassociat ,Relcapital>
Market Close Box:
BSE Sensex 15514.79 -447.77
NSE Nifty 4585.60 -130.30
USD Rs.42.63
Oil Nymex $122.3
K.Karthik Raja,
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