Stocks in the PSU sector continued to gain capitalizing as the disinvestment euphoria continued in the markets. This time around its was HMT and ITI's turn to spike. Metals and Oil and Gas were firm thanks to the falling dollar. We expect Realty stocks to recover in today's trade where as the Metals might take a breather after dollar bounced off lows today.
Austral Coke is one stock that is looking interesting among the smallcaps. The stock has seen lot of interest among speculative investors and is showing decent strength at RS 10 level. We recommend this as a high risk trade for traders who are looking at a quick 20 - 25 percent. Fertilizer stocks showed signs of like with FACT and Nag Fert leading the gainers. We see some more room in Nag Fert after a day of consolidation.
Our recommendation IVR Prime remained locked in 10 percent circuit for the second day in a row, following a share swap deal with IVRCL Infra. We recommend Usha Martin as a midcap idea at Rs 74 for a target of Rs 85 in the short run. Also one could look at stocks like Exide Ind, Ankur Drugs and Simbhaoli Sugars in the midcap space.
Overall momentum is with the bulls and investors are relatively less cautious than they were a week ago