Stocks on Dalal Street are likely to kick off the week with a green tick after closing in green for the past 3 consecutive sessions. Expect the benchmark index or the Sensex to gain nearly 0.5 percent or 75 points. We do not expect a broad based rally, but we could see some stock specific activity
PSU's dominated the trade on Friday on the back of divestment news from the government. The sectoral index gained nearly 3.9 percent for the day and is likely to extend its gains to Monday. Realty and Metal stocks were firm. We have seen a flurry of activity in midcap Realty space and we advice long term investors to avoid this space as you might get a better entry point. Metal stocks are likely to hold their gains as the dollar continued its fall on hopes that the Fed would keep the rates unchanged for a prolonged period of time.
Sun Pharma Advanced Research was among the top gainers with a 16 percent gain thanks to some speculative buying and operator activity. The scrip closed at RS 88. We recommend investors to book profits at Rs 92 level, as this is a strong resistance for the stock. Reliance Ind Infra, TV Today Network, GHCL and Lanco Industries were among other gainers. RCF continues to gain for the second day in a row after a decent show on Thursday.It looks like investors have liked the idea of the company getting in to cement distribution business. STC and Dredging Corp were two other PSU's that spiked on hopes that they will be companies that will be divested in the first round of the process. It is prudent to trim your holdings in these stocks on another up move, as the divestment process might take couple of years from now.
Overall, a flat to positive day for the markets is in the offing. IVR Prime, Dhampur Sugars, Lanco Infra are some of the stocks that traders should watch out for in intra day trade.