Bears might finally get a chance to make some noise on Monday, after the RBI announced a 25 basis point hike in reverse repo rate suggesting that we might be nearing a point we might be near to a interest rate hike. Expect the benchmark index or the Sensex to give up one percent or more than 150 points for the day.
Telecom and Banking stocks were active on Friday,led by moves in Bharti Airtel, Idea Cellular and Reliance Comm. While Banking pack was strengthened by gains in PNB and SBI.Auto's might be the favorite sector for the bears as RBI's move to suck the liquidity in the system might impact vehicle sales. Stay away from Tata Motors, M&M and Hero Honda. Banking is another space that might see some profit booking in the short term.
Coming to the Midcaps, our call on MSK projects was on target with the stock hitting a 20 percent upper circuit on Friday. Another favorite of ours, Jubilant Food works added 17 percent to finish at Rs 344. We recommend booking profits in this stock at current levels.we do not want to blow our own horn, but S Kumars Nationwide, which was mentioned positively yesterday moved up by 19 percent to Rs 64. It is not a bad ides to trim your holdings at this price. Unfortunately, We do not have any picks for today, as we believe that Bulls need a break now, and let Bears play for a day