Stocks on Dalal Street are likely to move up for the second day in a row after more than 2 percent on Thursday. The benchmark index or the Sensex is likely to surge more than 3 percent or even more, as we are likely to play a catch up.
Investors have been clamoring for months for a bit of good news. On Thursday, they got a load of it. The DowJones industrials shot up 240 points, bringing its gains over the past three days to 622 points. It was the index's biggest three-day jump since last November. The Dow rose 239.66, or 3.5 percent, to 7,170.06. The Standard & Poor's 500 index climbed 29.38, or 4.1 percent, to 750.74. The Nasdaq composite index gained 54.46, or 4 percent, to 1,426.10.
Metals and banks are likely to be the front runners. As expected ICICI Bank had a good day on the bourses yesterday and is likely to add more to the 8 percent and expect Rs 350 level on this one. Metals were strong and especially Sterlite Ind, expect another day of strong performance and is on the way to reach the Rs 300 level.
Auto stocks are in top gear and expecta repeat performance. Tata Motors is our pick in this sector. Dish TV Rs 22.50 is likely to spurt in a big way after some positive comments from the management on a break even way ahead of the target.
Watch out for midcap stocks in todays trade, as the midcap indices have not participated in the pull back and they might bounce back anytime. Investors could look at taking some postions in second rung stocks as there is a good trading opportunity. Overall a great day for the investors and traders a head, as fire works are expected to lighten up Dalal Street on Friday.