Pre-Market Report: 04.09.2009

[B. Karthick]

Sensex headed for a positive finish for the day

Indian markets are headed for a higher open after closing in red for
most of the week. Positive global cues and some value buying might
prop up the Sesex. Expect the benchmark index or the Sensex to gain
one percent or 150 points and try to close above the 15,500 level.

Stocks in Asia opened higher this morning taking the positive cues
from the markets in U.S. The Japanese banchmark index or the Sensex
gained nearly 0.4 percent in the first hour of trade, where as South
Korea's Kospi is up nearly 0.5 percent on opening bell.

On Wall Street Investors moved back into stocks after a four-day slide
on hopes that a key government report on unemployment will confirm
that the economy is gaining strength.The Dow rose 63.94, or 0.7
percent, to 9,344.61. The S&P 500 index rose 8.49, or 0.9 percent, to
1,003.24, while the Nasdaq composite index rose 16.13, or 0.8 percent,
to 1,983.20.

The stock market indices stayed in green for most of the day but slid
towards the end of the day in final hour of trade. IT stocks continued
their run as there is strong momentum in these stocks. Consumer
Durables and Metal stock fared better and made it to the gainers list.

There were new set of gainers among the midcapsps and today it was
turn of Geodesic Technologies which was locked up 20 percent on high
volumes with nearly 5 million shares traded in the counter. Archies
and Amar Remedies were also active, with the former reaching a new 52
week high.Arvind Ltd and Rajesh Exports are two other stocks that are
looking explosive . We recommend Rajesh Exports at RS 52, as we
believe that there is some more room for the stock as soaring Gold
prices might provide the much needed boost for the scrip.

Overall, a positive day for the past month, with Midcaps dominating
the scene, as it has been for the past one month. Day traders are
advised to keep a close eye on Indo Tech Transformers and IRB Infra.