Stocks on Dalal Street are expected to open higher on the back of positive global and cues and positive sentiment among the investors. The benchmark index or the Sensex is likely to gain 100 to 150 points or nearly a percent for the day.
Realty and Auto stocks were strong in Friday and we see Oil & Gas along with metals to dominate the market today. Watch out for stocks like ONGC, Cairn energy and Reliance Petroleum, as crude prices hit a two month high on NYMEX. Metals stocks are likely to benefit from a weak dollar and increasing global demand. Hindalco, Tata Steel and SAIL will be active in today's trade.
It was party time for Tea stocks as rumors were wide spread in the market that the output from Kenya might not be enough to fulfill the demand this year. Jayshree Tea, Harrison malyalam, Dhunseri Tea and Mcleod Russel were active on Friday's trade with gains of 10 to 20 percent. Fertilizer stocks like HOCL and RCF were had a good day with double digit gains. We advise investors to book profits in Tea stocks on another up move, may be 10 percent from here. There is some more room for fertilizer stocks in the short term.
We are likely to see a higher open in the first hour of trade and some decent gains are not ruled out in the Sensex. We advise caution investors as we believe that correction might be around corner and the current valuations have factored in the fact that we at the end of the recession. Gujarat Apollo Ind, Granules India, Geometric Ltd and Jain Irrigation are some of the stocks to watch out for Monday's trade