Tuesday, June 16, 2009

BPCL, HPCL good buy

Bears are likely to dominate Tuesday's session on Dalal Street, as negative global cues and profit booking might take a toll on the Sensex. Expect the benchmark index to give up nearly 2 percent or nearly 300 points and might test the crucial technical support of 14,520.00

Metals stocks took a beating on Monday as expected. Sterlite Ind, Tata Steel and SAIL were among the major losers on the Nifty as predicted by us yesterday. We might see further correction in Realty, Metal and this might spread to Consumer Goods and Durables today.

RNRL was a high flier yesterday as the stock jumped by nearly 25 percent to Rs 108 on the news of favorable court ruling. We advise investors to book partial profits int his stock, as the legal battle might extend for few months or years as RIL is likely to move to the higher court. It is a good idea to sit out of the markets today, as ther will be only few opportunities to trade. The market is likely to open low stealing away the opportunity to short at attractive prices. We advise investors not to short the market after a 2 percent fall in Sensex, intraday.