Wednesday, February 24, 2010

Indian stocks markets are likely to open lower following negative global cues and nervousness among the investors ahead of the budget announcement.Futures expiry is likely to be the key to the direction of the benchmark indices this week. Expect the Sensex to lose nearly a percent or 150 points onces in a day

Realty stocks were surprisingly strong, while weakness in the Auto stocks was a major drag on the indices. We might witness continued weakness in this segment, as the run up has been huge in the Auto stocks.Maruti was hit hard followed by Tata Motors and M&M.

We have seen some unwinding in Sugar stocks following a slide in the global sugar prices. Dhampur Sugars, Rajshree and Mawana made the top losers list. We think that the worst is not over for the sugar pack, yet.Speculative activity continued in stocks like Infinite Computers, Pochiraju Ind and Atul Ltd. The new listing Aqua logistics fared well on its first day with a 10 percent gain at Rs 243 on a volume of 27 million shares.

The market is likely to open in red and might remain sub-dued for most of the day. We advice investors to sit out of the market and wait for things to clear up, before taking positions.Stride Arco, Clutch auto, ANG Auto and Mphasis Ltd are some of the stocks to keep on your radar.