Stocks on Dalal Street are likely to open flat to negative after two consecutive days of big gains. Even though the market has technically breached the 5,100 mark which is considered as a crucial level according to most of the chartists on the street, we believe that there is lot of resistance at these levels and big upside is ruled out, atleast for the current expiry
Yesterday's move in the markets was mainly due to the gains in big boys like Reliance and ITC. We have not seen broader participation in the market, which is a concerning factor. The Banking pack, which has performed well in the previous session, was subdued as investors booked profits in this space.
Select technology counters were on fire with the likes of HCL Tech and Patni registering decenet gains. HCL Tech gained more than 5 percent on the news of $200 million insurance order, while stake sale news helped Patni gain 5 percent to close at Rs 466. We recommend selling this stock at RS 478 level. Telecom story is worsening day by day with Bharti, Rel com and Idea losing ground even in a positive market. These stocks have become favorite destination for short sellers and further downside is not ruled out.
Mahindra Forgings, GMDC, Tata Sponge and Omnitech Info were among the stocks that have attracted investor attention on Monday. Mphasis is one stock that should be closely watched for traders looking to take a bullish stance. The stock has been hammered to Rs 690 level in the past few sessions and is looking over sold at these levels. One could look to buy the stock for a target of Rs 720