Monday, August 3, 2009

Select Midcaps likely to be active

FMCG, Oil & Gas and banking stocks were active on Friday and we expect Realty and Metal stocks to dominated today's trade. The market might consolidate at current levels after a decent gains last week. We remain bullish on Auto Space and especially Tata Motors after news reports that the deal with UK government is bound to happen soon. The stock is likely to touch Rs 450 level soon.

NTPC and RNRL are likely to be active after the Union power ministry has given the go-ahead to state-owned power utility NTPC Ltd to intervene in the gas dispute between Reliance Industries Ltd and Reliance Natural Resources Ltd pending before the Supreme Court.

Nelcast India was a notable gainer among the midcap stocks with the stock hitting a circuit limit on Friday. We advise investor to book profits around Rs 65 level as the had a dream run after touching Rs 27 in June 2009. JBF Ind, Patni Computers and Sonata Software were among other gainers. We might see a further move up in Patni after posting good set of numbers.All eyes will be on Rolta (Rs 156) as the company will report its numbers for Q1 today. We recommend booking partial profits in the stock after a dream run.ICRA and Wire and Wireless are other stocks to watch out in today's trade.