Tuesday, January 12, 2010

Markets to remain flat, All eyes on Infy

sheth_jg (11-01-2010 13:54:55): We close flat to red

Hope saw yesterday closing, Nifty levels for January given ,Follow that & make profit

Markets are eagerly waiting for Q3 numbers from IT Bellwether Infosys, kicking off the earnings season, providing investors withe a pulse check of the corporate earnings. Expect the benchmark to be flat to sud-dued, barring a positive surprise from Infosys.

Analysts expect Infosys to report a 10 percent decline in the profit YOY and also predict some pressure on the margins weighed by pricing pressures and an appreciation of the rupee against the dollar. We remain 'Neutral' on the stock and believe that the stock is fairly valued at Rs 2,500.00

Midcap Mania continues in the markets with stocks like First Winner Ind, Mic Electronics and Jaywal Neco hitting the 20 percent band. Ship Building stocks were in the limelight, with ABG Shipyard and Bharti Shipyard gaining by nearly 20 percent for the day. Traders could look at capitalizing the euphoria in Midcaps by placing their bets on stocks like Sterlite Technologies, Punjab Chemicals and Excel Infoways