Friday, March 5, 2010

Stocks set to rally on bullish sentiment across the globe

Top Picks -Ongc,gail

Stocks in Mumbai are set to rise after taking a pause yesterday, following positive cues from the global markets. The indices are looking string after having taken a break yesterday. Expect the Sensex to gain nearly 1 percent or 170 points for the day.

Realty stocks continued to show strength in a lacklustre market yesterday. The realty sectoral index gained more than 2 percent for the day,led by gains in DLF and reliance Infra. Midcap and Small cap stocks stole the show and are likely to maintain their momentum today. The Midcap and Smallcap indices gained more than 0.5 percent even in a flat to negative day.

Auto Ancillary stocks, especially tyre stocks like JK Tyre and Ceat were among the top gainers yesterday with double digit percentage gains. We expect Apollo tyres as a catch up play in today's market. Other Infra Midcaps like Maytas Infra, ARSS Infra and Goldstone Infra were among the leaders in yesterday's trade, Realty was clearly the flavor of the day, and the party is likely to continue in to today's trade.

Overall a positive market for the day, with Midcaps dominating the show. We advice investors to stay away from stocks like Syncom Healthcare, ARSS Infra and Astec Life, while traders can try their luck in these scrips from an intraday perspective