Nifty closed at 4662 with a loss of 1.48%. Now if it starts trading below 4635
then it can test 4594, which is 38.20% retracement level of the recent rally from 4353 to 4743. On higher levels, if
it sustains above 4700 then it can test 4743. However, for short term we maintain bullish view for the first target of
4920 and second target of 5109. The stop-loss should be 4490 on the closing basis for all the long positions.
Coming to the stock specific activity, looking at the recent developments at Maytas Infra, we believe that the stock has an upside of more than 50 percent from current levels. The Union Government has decided to hand over the reins of management and promoter status of Maytas Infra Ltd to IL&FS, which already holds 14.5 percent in the company. Expect the stock to reach Rs 150 level in no time.
Godrej Ind is another stock that is looking explosive at the current level of Rs 190 and we advise investors with risk apetite to try their hand for a target of Rs 250. The company's plans to exit non-core businesses and also the upcoming Godrej Properties IPO might bolster the stock in the coming days.
We are of the opinion that largecaps will under perform the rest of the markets, especially midcaps as this space is likely to be on fire in the coming days.Watch out for midcaps like Indo Tech Transformers, KS Oils, Jindal Photofilms and last but on the least, the stock of Satyam Computers looks explosive at current levels after surpassing the Rs 120 mark and one should expect the stock gain another Rs 20 in the next 2 trading sessions.