Pre-Market Report: 15.09.2009

[B. Karthick]

Sensex to resume its uptrend, Midcaps in spotlight

Stocks on Dalal Street are likely to trade up on opening bell after
closing in red on Monday. We expect the Sensex to gain nearly 100
points or nearly 0.7 percent for the day. Midcap and Smallcap stocks
were in demand yesterday and this trend is likely to extend.

Stocks in Asia are having a good Tuesday after experiencing a slow
start for the week. South Korea's Kospi gained 0.8 percent in the
first hour of trade, where as Japan's Nikkei is up nearly 0.5 percent
for the day. Stocks in Australia's benchmark is flat after closing in
green on Monday.

Stocks bounced back from early losses to post moderate gains as
traders funneled money into utility and financial companies. Major
market indexes ended at their highest levels in nearly a year.he Dow
rose 21.39, or 0.2 percent, to 9,626.80. The broader Standard & Poor's
500 index rose 6.61, or 0.6 percent, to 1,049.34, an 11-month high.
The Nasdaq composite index rose 10.88, or 0.5 percent, to 2,091.78.

Auto and PSU stocks were the leaders in Monday's trade led by Tata
Motors, PNB and SBI. We see Power and IT sector in Tuesday's trade.As
mentioned in yesterday's column, Textile firm Himatsinka Seide firmed
up on the bourses and registered a 20 percent gain on huge volumes. We
recommend investors to book partial profits around Rs 49 to RS 50
area. Other firms in the textile business, like Provogue also played
catch up yesterday. But the volume is something that is looking
unusual and one can expect a speculative move in this stock. So
traders could book profits in Himatsinka and swtich to Provogue for
some quick gains.

PNB Gilts is my favorite for the day today as we hear rumors of PNB
looking to sell its stake in the company.The stocks is at a key
technical level and if it manages to break Rs 32 we might see a target
of Rs 42 in this stock. Hindustan Motors is another speculative play
as we believe that this might catch traders fancy as this is the Auto
sector, which is hot now and also has a realestate story attached to
it. A good bet for traders with risk appetite.


"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"

Key Levels for Today Trade:

NIFTY INDEX Resistance :4835 / 4860 / 4887 / 4921
NIFTY INDEX Support :4805 / 4782 / 4757 / 4732
Mean :4820

Key Numbers for NIFTY on upside 4835 / 4860 / 4887
Key numbers for NIFTY on down side 4805 / 4782

BANK NIFTY INDEX Resistance:8079 / 8173 / 8267
BANK NIFTY INDEX Support :7868 / 7810
Mean :7973.5

Previous Close Box:

BSE Sensex 16214.19 -50.11
NSE Nifty 4808.60 -20.95
USD Rs.48.70
Oil Nymex $68.85