Monday, March 9, 2009

Market to remain sideways, Stock specific action likely

Satyam Computers might remain active in early trades after hitting the upper circuit on Friday. According to the news reports the company might invite for EOI as early as Tuesday and the whole sale process might be wrapped up within a month. The scrip at Rs 42, looks like a low risk hight reward bet at the current market price.

Watch out for a rebound in banking and realty stocks as these stocks look oversold at current levels. Overall, subdued market with a bullish tone is on the cards in Monday's trade.

However, the key indices are expected to come under renewed selling pressure sooner than later.

Moreover, local traders and investors would prefer to stay light ahead of holidays on Tuesday and Wednesday.

Overall, we continue to advise caution, as the key indices closing in on October’s intra-day lows. The CNX Mid-Cap actually made new bear market lows last week. The Sensex and the Nifty might follow suit shortly due to worsening global environment and growing worries over the domestic outlook.