As mentioned in our pre-market review Realty and Metal stocks continued their slide with the sectoral indices losing nearly 5 percent for the day. Tata Steel and unitech which were highlighted in review section yesterday were among the major losers with Unitech falling nearly 10 percent for the day.
We believe it is time for a small pull back in the beaten down sectors. Metals might bounce back after 3 days of correction. Also, we would like to reiterate our bullish view on the healthcare sector and especially generic drug manufacturers. Also, IT looked resilient in a weak market as the sector managed to end the day with a small gain.
We would like to focus on Auto sector in today's section. The stocks of Tata Motors, Mahindra and Ashok Leyland are due for a good pull back as investors might bid up the shares in this sector on hopes of revival in demand for four wheelers. Auto Ancillaries also look attractive at current levels and Amtek Auto is our pick in this space.
Speculative midcaps might grab some attention after getting trashed for the past few days.On Mobile, Royal Orchid Hotels, Neyveli Lignite, Crew BOS and KEI Industries are some of the stocks that might catch fire if there is a rally in the market