Pre-Market report on 19.03.2008

[Sukumar]

Bears bow before Dow ; Dalal Street ready to rise from
the low
=====================================================================
Its 400's time again for Dow Jones. This is the second time in 10 days
for
Dow Jones to gain more than 400 points. Lehman Brothers and Goldman
Sachs
shattered the bears hopes of another winning session and then
Bernake's 75
basis point rate cut, though on expected lines ignited the rally
further.
The rally once again proves that things are not as bad as expected.

Japanese markets were trading in green after quite some time boosted
by Fed
decision and overnight US rally. US Dollar pulled back strongly
against
Japanese Yen and currently trading at 99.64.

Bear Stearns shuns Indian Markets

Bear Stearns rocked the Indian Markets for the last sessions
especially
midcaps which are already battered in the last 2 months. Absolutely
no
support from any corner sent these stocks dwindling. Retail Investors
are
mostly invested in the markets have no choice except to hold and pray
for
good times. Investors who are sitting in cash are waiting for sub
12,000
levels as per rumours. Now lets see whether markets prove their might
again
or investors win in this waiting game. Extremely high short positions
favour
the bulls but rock solid bear coterie will try to disturb the gains.

News about SEBI enquiry on Reliance Petro on allegations of Insider
trading
is unlikely to impact the markets. We expect a 600 - 800 point gain on
the
Sensex today. Any thing less than that should be considered abnormal
given
the heavy hit the markets have taken in the past couple of months.
This is
the second time the US markets are providing the domestic markets an
opputunity to pull back. Last time IIP data was cited as the reason
for
wasting the oppurtunity.

Banking and Brokerage stocks are set to recover after severely hit in
the
past fortnight. There might another final bout of selling from Bear
Stearns
but we expect the selling to fade in the rally today. Orchid Chemicals
saga
shows how tables can be turned in couple of months. The promoter
bought
shares of the company under margin account and pressure from the
lenders
resulted in a big blow to their stock coupled with Bear Stearns
selling.

Newly listed stocks like GSS America, V-Guard, IRB Infra and On Mobile
have
showed great resilience in the past couple of months when markets are
beaten
black and blue.

Market Close Box
BSE Sensex 14833.46 23.97
NSE Nifty 4533.00 29.90
USD Rs.40.77
Oil Nymex $107.0

N.Sukumar
Research Analyst
www.kences1.blogspot.com