Stocks on Dalal Street are likely trade in the green after putting on agood show on Friday.we have seen some buying coming in at lower levels giving much needed support to equities. Expect the benchmark index or the Sensex to trade in a band of 50 to 100 points and most of the action is likely to be stock specific
The Reserve Bank of India on Friday, left benchmark rates unchanged and instead boosted the CRR reserve by more than forecast, to 5.75 percent.The central Bank also raised the growth forecast from 6 to 7.5 percent for the year.Banking stock had a liitle relief rally on the news that the interest rates were left unchanged. IFCI, Uco Bank, RCF, Moser-Baer India and IDBI Bank were the top gainers in the index.
Smallcap and Midcap stocks showed some signs of life on Friday with both the indices gaining more than a percent. We advise investors to book profits on every rise, and only hold some positions in the Nifty and Sensex stocks. It is a good idea to stick to the big names as we believe that the largecap stocks will out perform the Midcaps if there is a recovery in the near term