As expected, IT stocks remained solid as the sectoral index gained nearly 0.3 percent for the day. Realty stocks took a beating and rightfully so, after double digit percentage gains last week. Metals were under pressure as well.
The stock of Tata Steel is likely to witness some more selling today after reporting lacklustre results. The stock looks weak even after a sell off yesterday. We see the stock falling to atleast Rs 400 in the coming days from the CMP of Rs 442. Also stay away from the energy names like Cairn India, Essar Oil and the exploration stocks, as there might be a negative impact on this sector after a steep fall in the price of oil.
Crude futures tumbled almost 6% Wednesday as U.S. oil inventories unexpectedly rose, raising fresh concerns of weak demand. Light, sweet crude for September delivery settled down $3.88, or 5.8%, at $63.35 a barrel on the New York Mercantile Exchange.
Midcaps remained immune to the carnage yesterday. We expect this sector to be resilient during the slide in the market. IT which remained strong yesterday, might in the line of fire today,as there might be some selling pressure in this sector.20 Microns, Allied Digital, Amtek Auto, DLF, India Bulls Securities, JP Hydro and Jain Irrigation Systems are some of the stocks to watch out in today's trade.