Stocks on Dalal Street look to recover from two days of loses on Tuesday after losing ground in yesterday;s trade. Positive cues from the global markets, some value buying in select stocks and window dressing might help a more than a 100 point jump or nearly 0.8 to 1 percent gain in the benchmark index or the Sensex.
Consumer Goods and Metal Stocks were among the major losers shedding more than 1.5 percent for the day. Hindalco was a major loser as the stock gave up more than 4 percent dipping to Rs 137 levels. Expect a strong bounce back in this stock today and there is a strong likelihood of the stock closing above Rs 140 mark. Sterlite Ind was another stock that was a drag on the metals index.
Real Estate major DLF continues its southbound journey for the second day in a row reaching the Rs 350 mark. We advise exiting the stock on any kind of up move from the current levels. Jaiprakash Ind and L&T were other laggards among the index stocks. Investors betting on Midcap space should take a look at Max India, ETC Networks and Zee Entertainment, as there might be some positive news flow in these counters in the next few days.
Smallcap continued to out perform the markets and even the Midcap space. There has been great deal of activity in the smallcap stocks as investors moved their money to risky bets even in a falling market. Some of the stocks that look attractive from a trading perspective include, Amar Remedies, Nucleus Exports, KRBL and Zicom Electronics. Overall, a positive day for the markets in the making after two days of correction.