Markets Might open in the Red today then slowly stabilise, following Coup in Thailand and Weak US data:

With most of the Asian markets now recovering from Morning blues, following the Coup in Thailand, Indian markets are set to open in Red today, which will recover gradually. Thailand market is one of the cheapest in Asia and hence when it opens tomorrow more and more funds will explore buying opportunity. Hence there is no threat for the Asian Markets as such for the medium to long term. Thailand, usually one of Southeast Asia's most stable countries, has been in a state of political flux this year after massive rallies forced Prime Minister Thaksin Shinawatra to dissolve Parliament. Thaksin, who was in New York attending the United Nations General Assembly, has faced calls to step down amid allegations of corruption and abuse of power. Traders watching Thailand closely are certain to remember how trouble in the kingdom had worldwide implications in the past: The Asia currency crisis that erupted in 1997 began with the devaluation of the Thai baht, then snowballed into a currency crisis in emerging markets around the world. The Asian currency crisis last decade was triggered in part because of the economies' dependence on short-term private capital from overseas, which poured into the region throughout the 1990s. Capital suddenly fled those countries, causing their currencies to plunge and making it harder for the countries to repay their foreign debt.

``It is far from certain that the coup will succeed and if it succeeds, we don't know exactly what kind of government will follow,'' said Marc Faber, founder and managing director of investment firm Marc Faber Ltd., who lives in the northern Thai city of Chiang Mai. Still, he said, ``the conditions of Asia today are totally different than the conditions were prior to the Asian crisis.''

``The situation is very different than it was in 1997 and 1998, when you had large current account deficits in the region and large vulnerability because of borrowing,'' said Michael Mussa, the IMF's research director in 1997 and 1998 who is now an economist at the Institute for International Economics in Washington.Thailand reported a $309 million current account surplus in July, following an excess of $65 million in the previous month, the central bank reported Aug. 31. Exports climbed to a record. For the full year, the country may post a current-account excess of $3.6 billion, or 1.8 percent of gross domestic product, according to Credit Suisse forecasts.

Yesterday's FII data was positive.....that will help the markets recover unless they change their mindset today suddenly.......

Today's Recommendations:

1. Tilaknagar Industries Ltd at Rs.50 for a target of Rs.70 and Rs.96. SL--->Rs.46.5

2. Avon Organics Ltd at Rs.24.7. With a Target of Rs.42 and Rs.65. SL-->21. The preferential allotments were Rs.48 for non-promoters and Rs.70 forthe Promoters. Will get help from the fall in crude prices and fall in Molasses prices( a by-product of sugar companies). The detailed research report will follow...

3. S.....L..... Ltd at Rs.42

4. B........S.....Ltd at Rs.72

5. Sa......I.. Ltd at Rs.74

6. Sh....I....Ltd at Rs.31

Sell:

1. Hazoor Media and Power Ltd

2. Paramount Communications Ltd

3. Tata Steel Ltd

4. Hindustan Zinc Ltd

5. Helios and Matheson Company Ltd

6. Ugar Sugar

Hold:

1. Soma Textiles and Industries Ltd

2. Gujarat Ambuja Cements Ltd.

3. FCS Software Ltd

4. PBA Infrastructure Ltd

5. California Software Company Ltd

6. United Breweries Ltd

7. United Holdings Ltd.--> The stock hit the circuits after Recommending Yesterday.

8. Paushak Ltd---> the stock hit the circuits yesterday after Recommending Yesterday.

More in the following postings.....

Best wishes, Suman Mukherjee

India.

http://finance.groups.yahoo.com/group/SumanSpeaks/