Indian markets are headed for a flat to positive on opening bell, as the indices look tired after a decent rally in the past 10 sessions. We expect the benchmark index or the Sensex to open higher by 50 points or so. There is a likelihood of selling coming in at higher levels, especially in the afternoon session
As expected Realty and Metal stocks were among the leaders, while Auto stocks were on a wild ride outperforming the rest of the sectors. We recommend booking profits in Realty and Auto stocks for now, after a surge in these stocks on Monday.Book profits in DLF and Unitech on every rise and last but least Suzlon is another stocks that is worth shorting at Rs 72 levels for a quick gain for Rs 2-3.
Asian Electronics and PNC were surprise winners among the midcaps with the former witnessing a huge block deal early in the day. Auto Ancilliary stocks were on fire as the stocks move in tandem with the rally in Auto stocks. Munjal Auto, Hi-Tech Gears and Amtek Auto were among the major gainers.
We recommend day traders to avoid going long in today's market. We suggest investors to stay out of the market for now, as we might see some volatility as there is uncertainty about the direction of the markets from here on. Traders who wants to play long could look at Patni Computers and Crompton Greaves among the quality names for small gains.Short sellers could look at taking advantage of the spike in Suzlon and EKC to make money if the market corrects.