Stocks on Dalal Street are headed lower on the last trading day of the week, on negative global cues and lack of strong buying support at higher levels. Expect the benchmark index to give back close to one percent or nearly 150 points for the day.
As expected Metals and Realty stocks weighed on the markets yesterday. We see Banking and IT stocks to see some more profit booking today.We strongly believe that the rally in banks is over done considering the possibility of a rate increase in the beginning of the year.
We advice investors to take some money off the table from Auto sector. Although the outlook is great for the sector in the coming years, the run up has been vertical in these stocks and it is time to book profits. Book partial profits in Ashok Leyland, Tata Motors and M&M.
Midcaps remained active, especially WWIL, Advanta, Mahindra Ugine and Mcdowell Holdings. WWIL was locked in 20 percent circuit after the cabinet approved headend-in-the-sky (HITS), a system for multi-system operators to distribute television broadcast signals.Traders are better off to take today off, as the markets are likely to be choppy. It is a good idea to stay on the side lines and watch the show rather than taking stock in this kind of market.We recommend short selling, Tata Motors and Idea Cellular for traders who are willing to play in the markets today