Bail out announced, Bulls to dominate the early morning session

Markets are set to rally on Monday as the uncertainties regarding the
bail out have been put to rest on Sunday. Expect the indices to
recover nearly 200 to 250 points in today's trade as we do not see a
run away move.

President George W. Bush and congressional leaders said they reached
an agreement on a $700 billion bank-rescue package designed to revive
moribund credit markets.The House may consider the plan tomorrow and
the Senate will vote by Oct. 1, lawmakers said today. Asian stocks
opened marginally higher on the news.Japan's financial stocks gained
after U.S bail out was announced late today.The Nikkei 225 Stock
Average climbed 138.42, or 1 percent, to 12,031.58.Coming to sectoral
plays, Realty is set to outperform stocks in other sector.

The realty index has lost more than 28 percent in the past month.
There should be a relief rally in the front runners in the sector like
DLF, Unitech and HDIL. We might not see the same kind of rally in the
banking sector, as the banking stocks have not been impacted as much
during the current slide. ICICI Bank is likely to stand out in this
sector.

Surana Telecom announced a buy back at price not less than Rs 50 per
share and this is approximately 40 percent more than the closing
prices of Rs 28 on Friday. Some other stocks specific stories that
look interesting are SPIC which moved up more than 12 percent on take
over talk from  Reliance Ind. Tata Communications, GMR Ind and United
Phosphorus.

Suitable stocks for intraday today:
<ICICIBANK, AXISBANK, BHARTIARTL, BHEL, RELINFRA, INFOSYSTCH,
KOTAKBANK, TATASTEEL, TATAPOWER, PNB>

Market Close Box:
BSE Sensex 13102.18 -445.00
NSE Nifty 3985.25 -125.30
USD Rs.46.43
Oil Nymex $106.8

B.Karthick
Research Analyst.

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