Bulls roared on Dalal Street on Wednesday, as positive global cues coupled bu short covering helped the Sensex regain the lost ground. Expect the benchmark index or the Sensex to consolidate after a big day of gains. We see the Sensex giving back close to a 0.8 to one percent or 200 points for the day.
Realty and Metal stocks which led the crash on Tuesday were major gainers on Wednesday's rebound. Jaiprakash Ind, DLF Lts, Hindalco, Unitech and Sterlite Ind were among the gainers in BSE-30 stocks. We advice investors to trim their holdings. especially in the Realty space as we believe that there is some more room to the down side for these stocks to look attractive.
One can expect some selling to come in, in the mid-cap space after a strong rebound yesterday. Excel Infoways, Educomp Solutions, Tips Ind, HDIL and India Cements topped the gainers charts. The direction of the market is really tough to predict from current levels. But it is safe to assume that bears have a strong hold on the market, and the bounce back we have seen may be a one time event.
It is going to be tough for the bulls to push the index up from here. We advise investors to trim their holdings and traders to play in small lots to avoid bigger losses.Overall, today might pan out to be another day in red. We recommend booking profits in Realty and speculative midcaps on any kind of up move