Wednesday, January 27, 2010

Bear grip tightens on D-Street

Stocks on Dalal Street might trade in a flat band with a negative bias following a bad phase for equities for the past two days. We might see the Sensex trading within a band of 100 points for most of the day with selling pressure coming in at every rise

As expected realty and Auto stocks bore the brunt of selling on Friday . Metals is another space that might take a big hit today. We advice investors to lighten their positions and raise their cash levels as there is a likelihood of a prolonged bear phase for the next few months

Banking is another space that is vulnerable space ahead of the RBI Meeting on the 29th of this month. Stay away from both PSU and private bannks, and there are no exceptions.Third rung stocks like First Leasing, Goldstone Technologies and Kaushalya Infra continued to hit circuits, inspite of the bearish sentiment in the market