We expect the market to open higher mainly due to firm global trend
The Obama administration is expected to announce on Monday how it will use the remaining $350bn of the Treasury's Troubled Asset Relief Program (TARP).
Metal stocks like SAIL and Sterlite are likely to maintain their uptrend as metal prices continued to be firm. Shipping stocks like GE Shipping are likely to bounce as the Blatic Dry index is back to its october highs. We see great value in the stock as it will be a beneficiary of a global rebound.Sugar stocks were active yesterday and are likely to be in demand as the sugar out put is likely to be lower this year and a global deficit in sugar inventories is likely to boost the fortune of these firms.
OnMobile Global
We recommend a buy in OnMobile Global from a short-term trading perspective. It is clearly visible from the charts of OnMobile Global that after witnessing a sharp sell-off during October 2008, the stock found support recording its 52-week low of Rs 190 in early November 2008.
However, since then the stock has been on a sideways consolidation in a broad range between Rs 205 and Rs 260. The stock recently tested the lower boundary of this sideways consolidation and bounced up. On February 4, the stock breached the 21 and 50-day moving averages by gaining almost 5 per cent with above average volume.
The daily relative strength index is rising in the neutral region towards the bullish zone. The moving average convergence and divergence is on the brink of entering into the positive territory. We are bullish on the stock from a short-term horizon. We expect it to move up until it hits our price target of Rs 260 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 225.