Wednesday, May 27, 2009

Stocks set to bounce back, focus shifts to large cap stocks

Stocks on Dalal Street are likely to recover from the sell off we have seen in the later half of the day. The Sensex is likely to gain nearly 3 percent erasing yesterday's losses. Watch out for Realty, Power and Banking stocks to lead the gainers.

Tuesday's sell off has seen some deep correction in Realty an Banking stocks which have lost more than 3 percent for the day. IT was the only sector that was immune to the bear attack. Sterlite Ind, Hindalco an Wipro Ltd bucked the trend by finishing off in green.

We expect yesterday's losers like Reliance Capital and Reliance Communications to bounce back in today's trade. Midcaps continues their winning streak an are likely to stay positive today. We do not expect a run away rally in midcaps today, as heavy weights are likely to outperform.

Spice Communications, Dishman Pharma, Era Infra, Archies and Fedders Lloyd were among the among major gainers in yesterday's trade. Jindal Power, MRPL, Austral Coke and GMDC are the stocks to watch out in today's trade. Overall a bullish day in the offing with bulls taking the battle back to the bears.