Banking, Realty and metal stocks are likely to lead the losers as investors are likely to book profits in these stocks
Yesterday as said STBT for nifty , Today, Expect a Blood--Bath below 2790 ... Expect a Level of 2755 - 2735
On Positive Territory , Will Show the Power Only Above 2800 Mark, Will Hit 2825 - 2850 Mark.
The stock of Satyam computers might see some volatility on the news that there are 7 companies in the bidding fray for a pie in the company. L&T has already publicly shown interest to take control of the company
Pharma stocks like Aurobindo Pharma, CIPLA, Glenmark and Divis Lab might be in demand on the news that international major Merck is eyeing to acquire a prominent Indian harmaceutical company and established drug brands.
Alok Ind, Adlabs, BEML, Aurobindo Pharma, CEAT Ltd and Deccan Chronicle are the stocks that might see some action as investors will closely look at their Q3 numbers. Short term traders are adviced to stay away from the market, where as long term investors could hold on to quality companies. Over all expect the indices to close in red on the last trading day of the week.
Biocon
We recommend a ‘sell’ in Biocon for a short-term trading perspective. It is visible from the charts of Biocon that after finding support at its 52-week low of Rs 86 in late November 2008, it began to move up. This up move continued till the stock encountered resistance at around Rs 130 in early January. The stock reversed lower resuming its long-term downtrend. During this decline Biocon breached its 21 and 50-day moving averages and started loosing momentum. On January 27, the stock tumbled 7 per cent, reinforcing the bearish trend. A short-term downtrend is in force since early January. Both the daily and weekly relative strength index (RSI) are featuring in the bearish zone. The daily moving average convergence and divergence (MACD) indicator has entered in to the negative territory. Our short-term outlook is bearish for the stock. We expect it to decline further until it hits our price target of Rs 90. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 105.