Stocks on Dalal Street are up for a flat to positive open after two days of correction. Expect the benchmark index or the Sensex to trade in a narrow band of 1 to 2 percent for the day. Concentrate on Midcap and Smallcap stocks for the next few days, as investors are likely to shun index stocks
We have seen a decent pull back in the afternoon session on Friday. Consumer Goods, Healthcare and Banking stocks were in the limelight.Metals and especially Steel shares are might fare well in today's trade. We see a strong resistance for the Sensex at 14,000 level and a close above this will likely see the benchmark adding another 5 to 6 percent.
Reliance Infra is in the news because of all right resaons. The promoters are planning to hike the stake to 48 percent through a preferential offer and there is news on the company bidding for Rs 50,000 Crore worth of projects. We do not see a big move in the stock at the current market price of RS 1100. The news of Singh's resignation as the CEO of Ranbaxy might bode well for the stocks in the long run and the scrip looks sound even from a technical perspective at Rs220 level.
According to latest reports. the divestment plan is on fast track and we might see a some headlines after the cabinet is finalized. The government is in dire need of funds to cover its deficit and there is a strong possibility of a stake sale even in PSU's like ONGC and BHEL. So we recommend investors to get in to the game early, even after a recent run up in PSU stocks.
Overall, we might see a flat to positive day with stock specific price moves especially in the second rung counters. We like NIIT Ltd, GMR Ind, IG Petro and Shriram EPC and Steel shares from an Intraday perspective.