We advise investors to book profits today, as we see a correction in the near term. Stay away from the midcaps and speculative second rung stocks. We had a brand new list of gainers yesterday, as it has been the case for the past few sessions. Auto Ancillary stocks looked interesting on Tuesday, with ANG Auto, Indo Asian Fuse Gear, Lumax Automotive, Clutch Auto and Ramakrishna Forgings gained as these stocks played a catch up to auto stocks that have had a great run since bottoming out in March. We like Clutch Auto and Lumax from a trading perspective.
Aluminium major Hindalco spike on huge volumes by more than 6 percent, as investors and fund id up the shares of the company on rumors that Hindalco might be an acquistion target for a major international firm
Nifty has formed “Shooting Star” pattern on the daily chart. Yesterday it gave move beyond the
“Upper Trend Line” of the earlier mentioned “Diagonal Triangle” pattern and thus registered a “Throw Over”, thus
completing the five wave pattern comprised of three legs each forming since the level of 3537 ever since May 09. A
“Throw over” typically moves to around 138.20 % extention of the previous fall, however it may not be limited to
138.20% extention and may even surge higher.