Overall markets might open in Red today, but will

either remain flat or end in Green:

The overall markets looks Positive for the medium to the long term perspective, in view of the fall in the Amex Oil Index. The oil is expected to come down further to around $50--$55 per barrel, at the end of October, 2006 due to slowing down of both the US and Chinese economies and due to end of Summer Driving season; unless there is a threat of a major hurricane striking the US or the Mexican Coasts.

Yesterday the US markets were down due to interest rate concerns as mentioned in the previous article. This has been amply reflected in the markets world-wide, with most of the Asian and the Emerging markets trading in Red, till this report was being prepared. But, though there might be some concerns regarding the "Beige Book", labour department or productiivty figures but with the American Economy showing the signs of cooling off, I do not think there should be any concern for the markets going forward. If today markets open low, then use the opportunity to take position in some good counters. From the next month, the reusult season will start and hence gradual built up of position will start to take place from this month. There might be some corrections in the way but the overall markets looks positive from here on, especially when the oil has started to recede and is expected to drop below $60 per barrel.

Yesterday most of my recommended picks rose though the markets went for selling in the late hours. BSEL Infrastructure, Chandra Prabhu International Ltd( hit the buyer freeze of 20%), Gujarat Hotel Ltd( ITC Ltd is one of the promoters), all rose, while Haldyn Glass Closed with minor losses.

Today's Recommendations for the short to medium term:

Buy

1. Tilaknagar Industries Ltd at Rs.49.9, with a price target of Rs.62, Rs.96 and Rs.110.

2.BSEL Infrastructure Ltd at Rs.51 with a Price Target of Rs.120

3. Haldyn Glass Ltd at Rs.42, with a price target of Rs.90 and Rs.110

4. HPCL at Rs.306.15 for a price target of Rs.321 and Rs.328 for intraday targets.

5. S...G......F.....at Rs.30.

6.I....E....at Rs.27

7. Adlabs at Rs.300--Rs.315, if there is correction in the market.

8. R...T......

Sell:

1. Gateway Distripark at Rs.171.

2. United Western Bank at Rs.17.4

Hold:

1. Hazoor Media and Power Ltd above Rs.12

2. California Software Company Ltd with a SL-->Rs.67

3. P B A Infrastructure Ltd with a SL-->Rs.93.

In the initial stage, the markets might go down, but do not panic as the markets will recover gradually and rise up.

More in the following postings....

"BANDE MATARAM"

Suman Mukherjee

India.