Stocks on D-Street are likely to open higher following positive global cues and better than expected unemployment data from the U.S. We expect the benchmark index or the sensex to gain more than 0.5 percent or neary 85 points for the day
Gains in IT and Consumer Durables stocks helped the benchmark cover decent ground on Thursday. It is worth noting that the attention has suddenly shifted to Smallcap and Midcap stocks with the Midcap and Smallcap stocks gaining 0.9 and 2.4 percent respectively.
We strongly believe that there will be a huge rally in speculative stocks this week, as the complacency factor in the market is too high and this has encouraged speculators to get back in to the market. Traders might have a good time minting money if they are willing to take risk and can bet some money in second and third rung stocks. The key is to get out of these scrips after 10 to 20 percent gains and not be greedy and get stuck for life.
Some of the Midcaps that showed significant strength were BAG Films (mentioned in our Wednesday's review), Man Aluminum, Mudra Life, Vakrangee Software and Jayswal Neco. We like the Jayswal Neco and Vakrangee from a trading perspective, as we see a fresh break out from the current levels. Investors who would like to play it safe could bet on HEG, Unitech and DB Corp, form a short term perspective