Vivimed Labs hit 10 percent circuit at Rs 114 after a hedge fund arm of Reliance Cap picked up major stake in the company and reports are out that the company might come up with a preferential offer soon. Expect few more circuits.
Gokul Refoils and TTK Prestige were among the major gainers as the investors flocked these counters on hopes that they will report good numbers this week. Reliance Communications at Rs 247 might come under tremendous pressure after an independent auditor set up by the Department of Telecom to examine the accounts of Reliance Communications has concluded that the company has under-reported revenues of Rs 2,799 crore to the Government resulting in under-payment of Rs 315 crore as licence fee and spectrum charges during 2006-08. Stay away from the stock.
The market is likely to open high and might trade up at least in the morning session. We expect Bulls to dominate the market. Expect brisk activity in Reliance Communications. As we have mentioned before , do not go short in this market. We believe the markets will continue their up trend today and bulls might take the opportunity to make their presence felt.