The Nifty on the downside may dip to 3000 while on the upside it may test 3100. The Sensex has a likely support at 9800 and may face resistance at 10100.
Airline stocks look interesting this morning, especially Spice Jet and Kingfisher Air as there are rumors floating around in the market about a relaxation in FDI norms in the Aviation sector. The other piece of news on the sidelines is the possibility of British Airways picking up a 25 percent stake in GoAir.
After the hype that PE firms and MNC's like IBM and HP picking up stake in Satyam, the latest speculation on the street is the 'possibility of a merger with HCL, which we think is a distant possibility and is likely to be a dampner on the stock temporarily
We recommend a buy in SREI Infrastructure Finance stock from a short-term trading perspective. It is evident from the charts of this stock that it was on an intermediate-term downtrend from August 2008 high to early December 2008 low (from Rs 130 to Rs 35). This December low is also its 52-week low and a significant long-term support level for the stock. It recently bounced up, forming a double bottom around the previous trough at Rs 35. On January 2, the stock conclusively penetrated its intermediate-term down trendline as well as 21-day moving average by jumping 11 per cent. The volume was heavy during this jump. The daily relative strength index (RSI) is rising in the neutral region towards the bullish zone and weekly RSI is recovering from the oversold territory. Considering the penetration of the stock’s intermediate-term down trendline and the presence of significant support band at Rs 35 to Rs 40, we are bullish on it from a short-term perspective. We expect the stock to move up until it hits our price target of Rs 52 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 43.