Q2 numbers to set the tone, as the Sensex looks to consolidate
===================================================
Stocks on Dalal Street are likely to consolidate at the current levels
after the Sense dipped below 10,000 levels for the first time two
years. Expect the Sensex to to trade in a narrow band with a positive
bias. There is a strong possibility that the Sensex closes above the
10,000.00 level.

Meanwhile we have seen a series of bail outs this weekend as the Dutch
government intervened with a $ 13.4 billion capital infusion in to ING
the biggest financial firm in Netherlands. In a separate
development,South Korea sought to rescue its financial system by
guaranteeing $100 billion of lenders' foreign-currency debts and
providing $30 billion in U.S. dollars to banks. Nikkei opened in
positive territory and gained nearly 80 points or one percent.

Our friendly neighbor Pakistan might be in big trouble as the the
country might be facing the risk of  default on its debt obligations.
There is a strong possibility that IMF might give a helping hand to
avoid a major crisis. In what could be a good news to the firms in
Agri Commodity space, the government may ease restrictions on overseas
sales of rice, edible oils and cotton next month as local stockpiles
swell and global prices slump.In a key change in its stance, the
Securities and Exchange Board of India is mulling on banning short
sales to stop further fall in the market.

Jet Airways will be stock to watch today as it is expected to report
Q2 numbers which are likely to be below market expectations.The stock
lost nearly 44 percent in the past month on news of layoffs and a
sharing agreement with Kingfisher Airlines. Aviation as a sector
doesn't look attractive as the the funds have dried up due to the
credit crisis and things might get better if Oil continues to fall.

This is week is a busy week as lot of companies will be on deck with
their Q2 numbers. some of the prominent companies reporting their
number include, Geometric Software, Idea Cellular, Rolta and Omnitech
Info, Canara Bank, Petronet LNG and Jet Airways. Overall we might see
a positive day as valuations are looking attractive at current levels.
We see the market stabilizing at the current levels before taking a
decisive path.


N.Sukumar
Research Analyst
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