Tuesday, December 29, 2009

New high in the offing

After a really long weekend, the market could be headed for a new high before bidding farewell to the year 2009. However, with only three trading sessions and F&O expiry one will have to brace for a volatile week. Trading might be thin, both here as well as overseas, as many players would have opted for an extended year-end holiday. As for today, we see a modestly higher opening for the key indices and sideways movement. We would urge some caution at this juncture, as the market has already had a spectacular rally this year.

The headroom for further advance is limited. One will have to be extremely choosy and careful

Our favorite Max India has announced that a private equity arm of Goldman Sachs. The company's board has approved a proposal to raise $115 million. The debentures will be converted at a price of Rs 215 and has a lock in period of 18 months. The scrip has closed at RS 224 and has the potential to appreciate by more than 50 percent in the next 12-18 months. We expect the stock to move side ways for the time being. This scrip is strictly for long term investors.

Midcap space as usual is hot and Deccan Chronicle is one stock one should watch out for ahead of some restructuring news some time today or tomorrow. Great offshore Ltd, Nilkamal Plastics, VIP Ind and Maytas Infra are some of the stocks that are showing great momentum and are worth taking a look for traders with risk appetite