Wednesday, May 6, 2009

Buy Sugar Stock and Core Project

Buy NDMC no sl ...

Stocks on Dalal Street are likely to witness another flat day, as investors are likely to book profits and lock in their gains after a dramatic run in equities for the past 2 months. Expect the benchmark index or the Sensex to trade between 12050 and 12250 for the day.

As expected Realty and select banking stocks were in the limelight on Tuesday's trade. We advice investors to lighten up on their trading positions and book some profits in Wednesday's trade. The past 5 sessions have been really profitable for the traders and it is now time to take some money off the table.

Sugar stocks were on fire yesterday and Bajaj Hindustan stood out on huge volumes with a gain of 24 percent. We see some more steam after a pull back in this stocks and Rs 125 could be a reasonable target. Shipping stocks might extend their gains further after some correction.

Day traders could look at some midcap stocks JP Hydro, UCO Bank, Era Infra and KSK Energy. We recommend cutting positions in technology firms as they are likely to underperform in the near term, thanks to the new plan by Obama to eliminate tax incentives for US companies that encourages American firms to ship jobs overs