Investors look forward for another strong session after stocks put a good show on Dalal Street on Monday. We are expecting the Sensex to open nearly one percent higher for the day, following strong performance in the global equity markets.
Banking stocks dominated the trade on Monday and are likely to continue their up trend in to the morning session today. There has been fund buying in select Realty counters especially, Shoba developers which was locked in circuit. We have seen some strong operator activity in another Realty midcap Orbit Corp.
We expect Metals to outperform rest of the market in today's trade, thanks to a new 15-month low by the US dollar.Traders could bet on steel counters like Tata Steel, Ispat Ind and penny chasers could look at Lloyd Steel for quick gains. Kingfisher Air might gain early momentum on possible stake sale to PE firms and a possibility of increasing the FDI cap.
KPIT Cummins info is another stock that is looking hot in the current market. The stock gained more than 17 percent to make a new 52 week high of Rs 98.55. We recommend this stock for short term traders with risk appetite with a target of Rs 110.Cement and Telecom stocks are the two sectors that have under performed yesterday. We think cement is one sector that is worth looking at as the counters have not participated in the rally. Telecom stocks are likely to fare relatively better today. Edserv Systems, IVR Prime, Prajay Eng, Maytas Infra and GIC Housing are some of the stocks to watch out in today's trade