Monday, October 5, 2009

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We expect a soft opening due to weak global cues

We are of the opinion that the Indian markets are getting decoupled form the US markets as the FII interest has gone up in the past few months. Investors might take a pause after seeing the Sensex double in nearly 6 months. So there might be a reality check after the Sensex scaled to new 52 week high last week. The coming week might set the tone for the rest of the quarter with Infosys and some other key companies set to report their quarterly numbers. We believe that the better earnings are already baked in to the stock prices and we need to see some exceptional numbers to build on the gains we have seen.To keep it simple, the ride for the bulls will get tough as the the bar is set high for the upcoming earnings season.

3i infotech was among the most active stocks on Thursday and finished off the day with double digit gains. It is worth noting that LIC has picked up close to a million shares of this company last week. Visa Steel and NIIT are some other counters that have witnessed huge volumes and some speculative activity. Shiv-Vani Oil, Prism Cement and Advanta India are some of the stocks that are likely to see brisk trading on Monday. Overall, not a great day for the bulls, but do not go short as things might change any moment.