Tuesday, September 15, 2009

Midcaps in spotlight

FIIs make purchases in equities for the fifth day in a row

Inflow of Rs 3377.50 crore in five trading sessions

Stocks on Dalal Street are likely to trade up on opening bell after closing in red on Monday. We expect the Sensex to gain nearly 100 points or nearly 0.7 percent for the day. Midcap and Smallcap stocks were in demand yesterday and this trend is likely to extend

Auto and PSU stocks were the leaders in Monday's trade led by Tata Motors, PNB and SBI. We see Power and IT sector in Tuesday's trade.As mentioned in yesterday's column, Textile firm Himatsinka Seide firmed up on the bourses and registered a 20 percent gain on huge volumes. We recommend investors to book partial profits around Rs 49 to RS 50 area. Other firms in the textile business, like Provogue also palyed catch up yesterday. But the volume is something that is looking unusual and one can expect a speculative move in this stock. So traders could book profits in Himatsinka and swtich to Provogue for some quick gains.

PNB Gilts is my favorite for the day today as we hear rumors of PNB looking to sell its stake in the company.The stocks is at a key technical level and if it manages to break Rs 32 we might see a target of Rs 42 in thsisstock. Hindustan Motors is another speculative play as we believe that this might catch traders fancy as this is the Auto sector, which is hot now and also has a realestate story attached to it. A good bet for traders with risk appetite