Tuesday, May 19, 2009

India the best performing market

Markets are likely to open up after a Mad Monday on the street. Most of the investors did not get a chance to place their orders as the trading was haulted due to gigantic gains. Expect the Sensex to end the day higher by another 3 to 4 percent crossing the 14,500 mark

Winners were all across the board as investors were trying to grab each and every stock that was available in the market. Realty, Consumer Goods, Banking,Power and PSU stocks gained between 18 to 23 percent.Real Estate stocks made a giant leap on hopes of relief on the liquidity front coupled with potential for new business from government projects.

IndiaBulls Real Estate, GVK Power & Infra, Unitech and Reliance Capital were big gainers in yesterday's market. The run is likely to continue, as the market is hot now and we might find few sellers in the market. It is believed that there are Rs 25,000 Crore worth of short positions and this might provide a much needed fuel to the market.

We expected a 500 point rally and were surprised with a 2000 point run. The momentum is likely to continue and we might see another 5 to 6 percent. It is advisable to sell in to the market at around 14,800 level and stay invested in PSU stocks.So in a nut shell, book profits in the rest of the stocks and hold on to PSU stocks and some blue chips on another rally in the markets