Thursday, August 13, 2009

Bulls to return to the drivers seat, Stocks set to gain in early trade

Nifty btst will give huge profit ..book around 4555 levels and wait for further instruction

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Stocks on Dalal Street are set to roar after being mum for more than a week. We expect some buying to come in on the opening bell and there might be some short covering, that could boost the indices. Expect the benchmark index or the Sensex to gain nearly 300 points or 2 percent for the day

Realty and Healthcare stocks dominated the day with decent gains, where as metals and IT were on the receiving end. Realty stocks like DLF moved against the tide helped by DLF and Unitech. Banking stocks were flat to negative, but today might there is a string chance that these stocks will be one of the major gainers in today's trade.

As recommended Natco Pharma vaulted and was locked in circuit on huge volumes, we see some speculative buying and there might something cooking in the counter. There was some insider buying in the beginning of the year in this counter. Agri commodity related stock spiked up as traders placed bets that the prices of food product might spike due to drought conditions. LT Overseas, KCP Sugars, Kohinoor Foods, Heritage Foods and Ruchi Soya were some of the gainers in this space.

Prism Cement continued to gain and has some more room to move even after a decent run up. We recommend booking profits in Sugar stocks on an up move , as the rise has been too far and too fast.Also book partial profits in Hind Oil Exploration as the stocks has skyrocketed in the past few sessions.Karuturi Global, ICSA,Webel SL enery are some of the stocks to watch in today's trade

Wednesday, August 12, 2009

Sensex headed for a lower open, Banking and Realty stocks might take a hit

Indian markets are likely to open red and might trade in the negative territory, as investors are likely to dump stocks on negative global cues and lack of near term triggers. Expect the benchmark index or the Sensex to give up less than a percent. There is strong chance that we perform relatively better than our Asian peers today.

Auto stocks led the recovery on Tuesday with Tata Motors gaining more than 6 percent for the day. There was some select buying in Tech counters like HCL Tech and bluechips like GAIL and Ranbaxy.Auto, Realy and Metal Stocks outperformed the rest of stocks on Tuesday.

We see a major correction in the banking sector as the stocks might fall on the weakness in the global financial stocks. Also expect some correction in Auto and Realty which have been major gainers yesterday.

Sugars stocks go sweeter after the price of the commodity hit record highs. We have see stellar gains in Andhra Sugar, Bannari Amman, KCP Sugar and Rajshree Sugars. Natco Pharma was an unusual mover with great price action on huge volume. Definitely a great speculative stock to watch out at Rs 94 level. NDTV and Aptech are two other stocks that look explosive. We advise investors to sit on the sidelines and avoid huge positions in the current market

Tuesday, August 11, 2009

Still confuse what to trade.......

Wait for Dhamaka.....

Stocks on Dalal Street are likely to trade ina narrow band on Tuesday, after testing the 15,000 mark intraday. There is a strong chance that the Sensex might break 15,000 level in the coming days. Expect the Sensex to fall 50 points or less than 0.5 percent for the day.

As expected FMCG and Auto stocks too a big hit as worse than expected monsoon might impact the sales of consumer goods in a big way. Auto stocks have seen correction across the board with the sectoral index correcting more than 4 percent for the day. M&M was a major loser shedding more than 9 percent for at Rs 760. We see further correction in the stock and investors should stay away from the scrip as we foresee another 10-15% fall from current levels.

Suzlon Energy continues to correct and gave up another 6 percent to Rs 80 level. We do not see an upmove in the scrip anytime soon. Cement counters witnessed heavy selling and this reflect in the prices of ACC and Ambuja Cements, which gave up nearly 5 percent. Investors fled to safe sectors like IT, which are immune from drought conditions. The Sectoral index gained more than 2.6 percent helped by 3 biggies, TCS, Wipro and Infosys.

We see the flu condition in Mumbai worsening in the coming days and this might prop up stocks in the Pharma sectors. One could get in to stocks like Cipla, Panacea Biotech and Reddy's Laboratories, as these stocks are defensive plays in a falling market. Hindustan Oil continues its run as the demand for Oil Exploration stocks still remained in the market. Sugar stocks like Rajshree Sugars and EID Parry spurted as Sugar prices hit a 28 year high in the commodities market

Monday, August 10, 2009

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Auto and Realty stocks were among the major losers on Friday, and we expect Realty bounce back int today's trade. Metal stocks look like they have some more room to grow, going forward as commodity prices remain firm.

Investors booked profits in stocks that have had a dream run. Tech Mahindra fell more than 7 percent to Rs 767. United Spirits, Suzlon Energy, IRB Infra and Brand House Retail were some of the stocks that are under sever selling pressure.

Prism Cement looks strong at RS 53 even after gaining more than 15 percent on huge volumes in a falling market. Analysts attribute the spurt in the stock price to the company's plans to consolidate the business of H. & R. Johnson Limited and RMC Readymix Private Limited with the Company.Barack Valley Cement and Sun Pharma Advance Research have seen huge volumes and look interesting at these levels.

Today might be a good day for the bulls as there is a strong chance for decent gains in equities. Traders could look at stocks like Genus Power, Punjab Chemicals, India Info line and Fortis Healthcare for some intraday moves.

Friday, August 7, 2009

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As mentioned in our pre-market review, Auto sector bore thne brunt of heavy selling as investors booked profits in stocks like Tata Motors, Hero Honda and Ashok Leyland, which came out with a bad set of numbers for the month. Realty and Metal Stocks were also under tremendous pressure as the sectoral indices gave up more than 3 percent for the day.

Textile stocks might spurt on the news that the textile industry would get Rs 2,546 crore as subsidy under the Technology Upgradation Fund Scheme within three days, this is likely to help the capital-starved industry. Arvind Mills and Alok textiles might see some demand on this news.

Some Midcaps were on fire even in a falling market. Development Credit Bank jumped more than 10 percent on heavy volume ending the day at Rs 38.60. There might some more room in the stock after a small pull back. Oil Exploration stocks were on fire, with AlphaGeo, Hindustan Oil Exploration and Selan Exploration making some handy gains. GATI Ltd, KIC Metaliks, Reliance Communications and Genus Powere are some of the stocks to watch out in today's trade

Wednesday, August 5, 2009

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Tech, Power and Realty stocks gave up some gains from the previous sessions, while Auto's continued to gain as Tata Motors led the gainers in this sector. Banking and Metals might resume their uptrend in today's session.

Select midcaps continued to gain inspite of a lacklustre market. IG Petro gained for the second day in a row on decent volume. The stock gained 12 percent after a 20 percent move yesterday. We see some speculative build up in this stock. Glory Poly Films, PVR Ltd and Austral Coke were other midcaps that have seen some interesting moves.

We advise investors to concentrate on Midcap stocks as we do not see much room in large cap scrips. Core Projects, Bank of Rajasthan, Pitti Laminations and Excel Infoways are some of the stocks to watch out in today's trade

Tuesday, August 4, 2009

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Stocks on Dalal Street are likely to extend their gains for the second day in a row after gaining more than 750 points in the past three sessions. Expect the benchmark index or the Sensex to gain more than 100 points and might breach the 16,000 mark on Tuesday.

Auto sector was a major gainer as investors bid up shares of automakers on hopes of a rebound in the economy. Realty was another bright spot after under performing on Monday.Mahindra and Mahindra gained more than 7 percent and is looking strong at R 918. We expect a correcting in Automakers like M&M and Tata Motors. So investors should look to book some profits on any up move in this sector.

We recommend selling Rolta India at the current market price after the company reported Q4 consolidated net profit was down at Rs 76 crore versus Rs 133 crore, QoQ. We are concerned about the narrowing margins and the stock is likely to correct more than 15 percent in the near term.

The Midcap space is getting heated up now with stocks like Fedders Lloyd, IG Petro, Empee Distilleries and TIPS Ind hitting circuit filters. We advise caution to investors in this space and one should take stock in quality companies.

The stock of Wire and Wireless might spurt after the rights announcement and one could expect a target of Rs 22 in the short run.Kemrock Ind, Hanung Toys and Gati Ltd are some of the stocks to watch closely in Tuesday's trade