Metal stocks are likely to be hit hard and might lead the losers list. Tata Steel, Hindalco and Sterlite Ind might lead the losers list. Auto and FMCG stocks which have lead the market yesterday might witness dome profit booking today. A healthy way to take advantage of this market is to play it safe by investing in Pharma stocks like Cipla, Dr. Reddy's and Divis Labs is our favorite in this sector.
We see the possibility of severe than expected correction as there might be some more selling to come due to the unwinding of positions that were build up in the run up to the budget. The stock price of Aegis logistics firmed up and gained 8 percent ahead of the board meeting to decide on buy back of shares. We like the stock on a pull back and one could take a position in this stock around Rs 117.
To wrap up, Wednesday might not bode well for bulls as markets are likely to correct after a day of relief on Tuesday. Indus Ind Bank, Praj Ind, Gammon India and REI Agro are the stocks watch for today. We believe that the markets won't have a clear direction until the 10th of July, and clear trend might emerge after Infosys reports its numbers