Tuesday, June 9, 2009

Small pull back expected after a massive sell off

Realty stocks were major losers in yesterday's trade with the sectoral index losing more than 10 percent for the day. Metal stocks were under pressure as investors booked some profit. We expect a minor pull back in Realty stocks , but metal stocks might fare better than scrips in realty sector.

News of PE firms like TPG being the front runner to pick up stake in Pantaloon Retail might bring back some interest in to the retail stocks to some extent. Investors have turned cautious with the sharp fall we have seen yesterday and this might rule out big gains for the midcaps in today's trade.

The breadth of the market is negative with most of the speculative stocks in the 'B' group finding no buyers in Monday's trade. Expect a similar situation in these stocks even in today's trade. Only one stock advanced for every 9 stocks that declined on the Bombay Stock Exchange reflecting the pessimism in the market.

To wrap up, there is a chance of a pull back in the markets today and risk averse individuals might consider this as an opportunity to lighten their positions in low quality stocks