(03-12-2009 14:45:53): Took 5200put nifty home as btst
Stocks are headed for a lower open in the final day of trade for the week. A late sell off in the U.S. markets might spur a round of profit booking on Dalal Street. Expect the benchmark index or the Sensex to shed nearly 150 points or close to a one percent for the day
Investors turned defensive after an run up earlier in the day. The Sensex gave up nearly 100 points in less than 10 minutes in the final hour of trade.Pharma stocks were major beneficiaries of the cautious approach of investors and major funds. Stocks like Ranbaxy and Cipla pulled up the sectoral index by nearly 2 percent. Both the stocks closed up by nearly 5 percent with Ranbaxy reaching a new 52 week high.
Metals and Realty are two sectors that might see some profit booking today's trade. Investors could pare their positions in stocks like Sesa Goa, Sterlite Ind and Tata Steel. Some profit booking in Unitech, Orbit Corp and DLF is also adviced. Two stocks that look ripe for profit booking are Jet Airways and Tata Elxsi after the kind of run up we have seen in both the stocks. Book proftits at Rs 600 and Rs 300 respectively.
Finally a day for the bears is in the offing with chances of a severe sell off towards the end of the day. Exit speculative and second rung counters and book partial profits in quality stocks.We recommend short selling Ranbaxy today at Rs 511 levels and Think Soft is another stocks that is looking weak on the charts