Pre-Market report on 21.07.2008

[B. Karthick]

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Markets in need of some 'confidence' to rally
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The stock market indices are set to open higher but might see some
volatility as the market is tensed ahead of the 'vote of confidence'
on the government on Tuesday.

Stock in Wall Street ended higher on Friday as Citi group came out
with a better than expected Q2 numbers. All the Asian indices opened
in green taking the positive global cues from abroad. Oil and
earnings are going to play a major role as the concerns on financials
has taken a back seat for now.

Politics might play a major role and might influence the movements in
the Sensex at least for the first half of the week. We expect the
government to win the vote and this might give the much needed relief
for the markets and the reason for bulls to celebrate on Tuesday. One
could expect the inflation numbers which are hovering around near the
12 percent figure to slip a bit by the end of the week.

Coming to the stock specific action the shares of Reliance
Communications might see some action on the upside as the company
withdrew from the talks with South African Telecom major MTN. IT
stocks might see some more pressure as funds are shying away from
fresh buying in these counters after disheartening numbers from Satyam
and Wipro last week.

Metal stocks especially in the Aluminum sector might feel some pinch
because of slide in the global prices for these commodities. Banks
might have some more upside left after handy gains we have seen on
Thursday and Friday last week. Also last but not the least there is
some action seen in Tea sector and this might spill to Sugar as well.
So overall, expect a good start for the week and let us keep our
fingers crossed for the vote tomorrow.

Suitable Stocks for intraday trading:
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<INFOSYSTCH, TATASTEEL, CAIRN, SESAGOA, STER, TATAPOWER, BOMDYEING,
ADLABSFILM, LICHSGFIN, EDUCOMP>

Market Close Box:
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BSE Sensex 13635.40 523.55
NSE Nifty 4092.25 145.05
USD Rs.42.78
Oil Nymex $128.8

B.Karthick,
Research Analyst.