Tuesday, March 23, 2010

Things look up, after a day of correction

WE USE OUR “WATER-LVL” TOOLS AS “BRAHMASTRA” – NIFTY YESTERDAY BREACHED WATER-LVL BUT CLOSED AT THE SAME POINT (5205) WHERE WATER-LVL AND NIFTY CLOSING CROSSING EACH OTHER. ANY CLOSING BELOW 5205 IS REALLY LIKE PUT BUTTER IN BURNING FIRE.

AS THIS IS LAST MONTH / WEEK OF FINANCIAL YEAR – SO I SEAT IN SAILENT MODE AND WAIT FOR MORE CLEAR DIRECTION. I AM CARRYING “HEDGE” POSITION WHERE FEW GOOD STOCKS ARE IN BUYING MODE AND FEW INDICIES ARE SHORT

Stocks look to bounce back on D-Street after a decent correction on Modnay. Expect the benchmark index or the Sensex to give up more than 0.5 percent or 100 points for the day.There might be some select buying in quality largecap stocks as funds have been lately abondoning Midcap stocks

Realty and Metal stocks were hit hard yesterday with both the sectoral indices gaining 4 and 2 percent respectively. One could see continued weakness in Realty in the near term, but Metals sector might recover in the near future.

Among the Midcaps, Syncom Healthcare stood out gaining more than 12 percent at RS 123as speculators bid the stock up. There is no doubt in our mind, that the stock is not worth more than Rs 80 and not more. Other movers include, Suven Life, KEI Ind, Lyka Labs and Man Infra, which gained more than 5 percent for the day.

We are of the opinion that one should stay away from the markets even today. The market is going to open up and move higher today. Do not expect sky rocketing gains, as there might be selling coming in at higher levels. Engineers India Ltd. Solar Ind, Emco Ltd and Cholamandalam DBS are some of the stocks to keep on your radar.