Pre-Market report on 03.07.2008

[SUKU BIGU]

Get ready for some pain, after a day of gains
===================================================
Stocks look to consolidate after a big day yesterday on the bourses.
Expect the Sensex to correct a bit and give up nearly 50 percent of
the gains from Wednesday.

Overnight the US markets did not fare better as concerns about
recession weighed on stocks in the second half of the day. The Dow
fell 166.75, or 1.46 percent, to 11,215.51, the close to a 2 year low
and the NASDAQ corrected by nearly 2.32 percent or 53 points to close
the day at 2,251.46. Oil prices shot to a new record above $144 a
barrel Wednesday as the government reported a bigger-than-expected
drop in U.S. supplies and the threat of conflict with Iran. Traders
are reluctant to take positions in equities ahead of the ECB meeting
tomorrow. Asian markets are getting ready for another day in red and
Japans Nikkei might be heading for another bearish session for the
10th day in a row.

We have seen a big bounce in stocks related to Realty and Capital
Goods sectors. Things might get back to where they were on Tuesday as
we expect another slide as bears might pounce on negative global cues.
Sugar as a sector might outperform in the coming months,as the the
central government has decided to initiate decontrol of the sugar
industry from the new crushing season, beginning October 1. Coming to
the stock specific activity, DLF might give up some gains from
yesterday as the news of a buy back is old now. Reliance
Communications might see some pressure as the company plans to stretch
itself and pursue the acquisition of MTN.

Yesterday's bounce is definitely a good one for the bourses, but
nothing has changed from broader perspective. The sentiment still
remains bearish and people are wary to take long positions. So, wait
for a pull back and accumulate stocks which have the long term
potential to become great growth stories.Expect a 2 to 2.5 percent
correction in the Sensex for the day.

Suitable stocks for "Intraday" today
<SUZLON,TCS,CAIRN,INDIABULLS,RANBAXY,ABB,GAIL,HCLTECH,DIVISLAB,IOC>

Market Close Box
BSE Sensex 13664.62 702.94
NSE Nifty 4093.35 196.60
USD Rs.43.34
Oil Nymex $143.5

N.Sukumar
Research Analyst