Wednesday, May 20, 2009

Sensex to stay flat, Midcaps to run the show

Our STBT nifty and Banknifty will Rock today

The stock market indices on Dalal Street are likely to correct and move sideways, as bulls might take a breather after a huge run up for the past 5 sessions. Expect the Sensex to trade in a narrow band of nearly 100 to 150 points. Midcaps are likely to dominate as investors are likely to bid up shares that have not participated in the rally.

Investors are advised to focus on IT and FMCG sectors, as they have not participated in yesterday's rally. Investors could look at midcap IT stocks like Aptech, NIIT Tech, Rolta and Polaris for some quick gains. Index based heavy weights are expected to underperform in the next few sessions, as investors might focus on midcap stocks for speculative gains.

SREI Infra looked explosive yesterday with a whopping 30 percent gain at Rs 66. We advise investors to buy this stocks if it corrects back to the Rs 55 level, as there is some more room for upside in this scrip.We like Crompton Greaves, Mundra Port, Gammon Infra and shipping stocks like Varun Shipping for today's trade