Wait for Dhamaka.....
Stocks on Dalal Street are likely to trade ina narrow band on Tuesday, after testing the 15,000 mark intraday. There is a strong chance that the Sensex might break 15,000 level in the coming days. Expect the Sensex to fall 50 points or less than 0.5 percent for the day.
As expected FMCG and Auto stocks too a big hit as worse than expected monsoon might impact the sales of consumer goods in a big way. Auto stocks have seen correction across the board with the sectoral index correcting more than 4 percent for the day. M&M was a major loser shedding more than 9 percent for at Rs 760. We see further correction in the stock and investors should stay away from the scrip as we foresee another 10-15% fall from current levels.
Suzlon Energy continues to correct and gave up another 6 percent to Rs 80 level. We do not see an upmove in the scrip anytime soon. Cement counters witnessed heavy selling and this reflect in the prices of ACC and Ambuja Cements, which gave up nearly 5 percent. Investors fled to safe sectors like IT, which are immune from drought conditions. The Sectoral index gained more than 2.6 percent helped by 3 biggies, TCS, Wipro and Infosys.
We see the flu condition in Mumbai worsening in the coming days and this might prop up stocks in the Pharma sectors. One could get in to stocks like Cipla, Panacea Biotech and Reddy's Laboratories, as these stocks are defensive plays in a falling market. Hindustan Oil continues its run as the demand for Oil Exploration stocks still remained in the market. Sugar stocks like Rajshree Sugars and EID Parry spurted as Sugar prices hit a 28 year high in the commodities market