Stocks Dalal Street might trade in a narrow band after managing to gain nearly 0.5 percent on Wednesday. The bulls are finding a lot of resistance at the 15,800 level and the going will get tougher from here as the stocks look tired after a huge run up this quarter. We see the the Sensex settling down at the current levels with midcaps being the only glimmer of hope
IT stocks, after under performing on Tuesday came back with vengeance and stood as the best performer for the day. The sectoral index gained more than 3 percent for the day. The news that TCS, WIPRo and Infosys bagged a multi-million dollar contract from global major British Petroleum brought more buyers in to the sector.
Majority of the action was in the midcap space as the things are getting very hot in this space. We expect the euphoria to continue and even extend in to the third rung stocks. Nearly 70 percent of the stocks in the 'B' group ended up with gains reflecting the Sentiment.
Suven Pharma was locked in circuit gaining more than 10 percent continuing its run, as mentioned by us on Tuesday's column.We have seen a new set of gainers yesterday, Granules India was locked in 20 percent circuit on news of preferential allotment to its promoters. Media stocks started to catch up with UTV and IBN 18 managing to score double digit gains. We like the stock of SREI Infra after a decent action in yesterday's market. The stock gained 11.5 percent with nearly 4 million shares traded.
We stick to our stance that the market will correct in the near term and the fact that the so called penny stocks are seeing some life confirms our prediction. We advice investors to stay on the sidelines as there is a strong chance that you will get a better entry level, while traders and try their luck in speculative midcaps