Stocks in Mumbai are likely to pull back on opening bell, as negative global cues and some profit booking might pose a threat to the bulls. Expect the Sensex to test 13,500 level in today's trade. Midcap and smallcap stocks might sizzle again as speculators are active in the market.
We might see an initial sell off in the market on worries about the political front. DMK as decided against participating the government and would like to extend support from outside. We don't see major impact from this, the only reason there might be a fall in the market will be weak global markets and some profit booking.
As expected the Sensex pulled back on Thursday but midcap and smallcap continued to gain in a hopeless market. We see the trend continuing even today, although the number of gainers might be limited due to selective buying and caution from the investors.
Interestingly, major international brokerages have placed a 'overweight' rating on the Indian markets and rightfully so as hot money is still flowing in.Cinemax India, Redington,Shriram EPC and IG Petro and Rural Electrification are some of the stocks to watch out in today's trade.