Stocks are likely to have a stronger open in the first hour of trade, as buyers might get back to the market after a day of correction. Bonus news from Reliance and positive sentiment following better than expected quarterly numbers from global major Alcoa are likely to provide the much needed trigger for the bulls
Reliance Ind (Rs2,100) came up with a pleasant surprise after the market hours by announcing a 1:1 bonus issue. This is likely to boost the stock by more than 5 percent for the day. We recommend investors to sell the stock at any price above Rs 2,250.00, as we see it as a short term trigger for the stock.
Zee Enterprises is another stock that looks attractive at these valuations (Rs 243). The company looks attractive at these levels, as things are going well for the company in many ways. Zee TV nudged Star Plus to take the second spot among the general entertainment channels.
Second rung counters continued to gain even in a falling market. Glory Poly Films, Onward Technologies, Brand House Retail and Yes Bank were among the briskly traded stocks. Godrej Ind crossed the Rs 200 mark as investors bid up the shares ahead of Godrej Properties IPO. We are of the opinion that the sell off in the market yesterday, on concerns of falling rupee is clearly over done and short term traders should use this correction to buy the dips, as the trend favors bulls in the short term