Indian markets are set to open flat to lower in the first hour of trade. Expect some profit booking to come in today at higher levels
As mentioned in the last column Oil exploration stocks were on fire as Crude Oil rallied to a 10 month record high. Alpha Geo, Selan Exploration and Jindal Drilling were all up more than 15 percent as the drilling sector is expected to make a come back. We advice investors to start trimming their holdings in this sectors as we believe the Crude prices might stabilize at the $ 80 level by the end of the year and this rally could be used to book profits in these stocks.
Midcap realty stocks like Brigade Enterprises and Madhucon Projects flared up on heavy operator activity especially in the former. There was unusual volume with decent price action in India Bulls Securities as the stock gained 14.5 percent on a volume of more than 10 million shares.
We are of the opinion that the market is overheated and has formed an intermediate top. There is a strong possibility of crash in the coming days as we thing some of the stocks have run ahead of the fundamentals. Book profits and stay on the sidelines