Monday, October 26, 2009

Mid cap banking in Pressure

The Nifty could swing in a 5000-5100 range in the near term. On the downside, watch out for 4940 and 4825.

Banks will be in the limelight ahead of tomorrow’s RBI policy review

Looks like the bulls are suffering from fatigue after a seven-month rally. Most of the good news appears to have been discounted. The road ahead will be a little bumpy as the bulls look for incremental positive news. Today we expect the market to open on a cautious note

Monday is likely to be a busy day as a lot of companies are reporting results. Some of the companies to watch are Bharti Shipyard, Dabur India, Empee Distilleries, GMR Infra, Harrison Malayalam and Kalindee rail are some of the stocks to keep a close eye on. Overall, not a great day for bulls. But do not go short in the market, as we believe that the market is likely to recover from a gap down open

We like Jubilant at current levels as the company guidance for 2010 is great and there might be a short term trigger for the scrip, as the company plans to divest a part of ist speciality chemical business in the coming days. We recommend a buy n the stock after some consolidation at Rs 225 levels.