Major indices in Mumbai might coninue to stay in a narrow band for most of the day, as investors are wary of taking bets at higher levels and are undecided about the direction of the market going foward. Expect the benchmark index or the Sensex to trade in aband of 50 points for the day
We have witnessed some profit booking in Metals and PSU stocks with the sectoral indices losing nearly 1.5 percent each. Hindalco and Tata Steel pushed the Metals sector lower, while NMDC was the main culprit for the fall in PSU stocks, after the government has decided to fix the price band of the FPO between Rs 300 and Rs 350Tata Motors was another casualty among the index stocks giving up nearly 4 percent on the news that Auto major Daimler will offload its 5.3 percent stake in the company at a discount to the current market price.
Hanung Toys and Jubilant Foodworks led the gainers list and are looking relatively strong when compared to the other Midcap stocks. Prithvi Info has seen speculative activity and strong operator activity is not ruled out. We like Hangung Toys at Rs 156 level, as we believe that the company is fundamentally strong and fresh break out might suggest further upside after some consolidation at the current level of Rs 158. We see a target of Rs 200 in this stock, if the market maintains its momentum