The Indian stock market indices are headed for a major break out rally, as the Sensex looks to extend it's gains from last week. We expect the benchmark to gain more than a percent or nearly 200 points for the day.
Metal and IT stocks are likely to be on strong footing even after decent gains on Friday. But the Dark horse for the day might be Realty sector which was a loser shedding 0.9 percent in the previous trading session. We like stocks like DLF, HDIL and JP Associates for a quick trade.
We strongly believe that the euphoria in the market is going to continue for a while and there is a strong possibility that we might scale to new highs.Midcaps are clearly set to out perform the broader indices as there might be some fund interest returning in to these counters. Lyka Labs is one of the top gainers from last week and was locked in circuit, up by more than 20 percent. Clearwater Capital Partners, a major FII increase its stake in the company last week. Network 18, Exide Ind and Mukand Ltd were other gainers in this space.
Overall, another positive day for the stocks with some solid moves in Realty and Metal counters.We like KSK Energy, SREI Infra and last but not least Renuka Sugars for some short term gains.