Bears tighten their grip on Dalal Street, F&O expiry to be the key

Stocks on Dalal Street are likely to take a beating once again after taking a plunge on Monday. Expect the benchmark index or the Sensex to lose close to 1 percent or 150 points for the day. F&O expiry might influence the moves in the markets to a greater extent.

Asian markets tumbled in early trade as investors dumped equities.Japanese shares suffered broad losses in early Thursday trading in Tokyo, with oil and auto-maker shares among the bigger losers. Japan's Nikkei 225 Average fell by 2% to 9,873.95 sinking below 10,000 for the first time since and the Topix lost 1.5% to 875.47. Australia's ASX 100 lost more than a percent in early morning trades.

Signs of a weaker housing market and a gloomier outlook on the economy gave investors more reasons to dump stocks.The Dow Jones industrial average lost 119 points, or 1.2 percent, in its third straight triple-digit drop.The Standard & Poor's 500 index slid 20.78, or 2 percent, to 1,042.63. The Nasdaq dropped 56.48, or 2.7 percent, to 2,059.61.

We seen a great deal of resilience inspite of negative global cues yesterday.Rs to Realty and Tech stocks led the bounce where as the banking sector took a hit. We see some selling coming in, in the technology space today. We advice traders to stay out of the markets in this volatile environment. Today, being the F&O expiry date might increase the confusion about the direction of the markets.

Think Soft proved to be a great short idea yesterday, as the stock opened at Rs 215 and hit a low of RS 183 providing good opportunity for the shor sellers. We advice risk takers to go short in this scrip again at Rs 225 levels.The sugar story looks to sweetened, so book profits in Balrampur Chini and Bajaj Hindustan at current levels. Stay away from stocks like Educomp Solutions, Sasken Communications and HDIL as these are too risky to bet ahead of the quarterly results.

Markets look to recover after a steep fall

After reaction, its time for some action now. The market appears to have made a hasty exit just as the RBI tone signaled the beginning of the end of easy monetary policy. A few surprisingly hawkish steps and comments unveiled in the RBI’s mid-year policy review set the cat among the pigeons. A hike in SLR, some tightening of lending norms and hike in inflation expectation sent a clear message that the soft corner shown during the economic upheaval will no longer be available. But, the market may have overreacted. What made the matters worse were persistent weakness in global markets and a couple of less enthusiastic numbers.

So, expect a bounce back though the start may still be a nervous one due to mixed external trend. RIL will announce its results tomorrow and numbers could match expectations as there is usually some treasury gain to bank on. With F&O expiry just a day away, further short covering could set in. Nifty Nov futures managed to end at a slight premium to the spot Nifty price

We are of the opinion that the markets were ripe for correction and RBI meeting was just an excuse. Realty was a major loser as funds dumped the stocks in this sector. We advice investors to get rid of the stocks in this sector if there is a bounce back. Metals and Banking were also week and were among the major losers yesterday. Sesa Goa was down 12 percent and was a major loser on rumors that the the company is subjected to enquiry by Serious Fraud Investigation Unit. The company denied the rumors later. However,the stock is priced to perfection and should be avoilded now.

Think Soft Global is one stock that defied the market direction and managed to close up by 20 percent and was traders favorite on Tuesday. We see the stock gaining intial hours and provides a good short selling opportunities, if it goes above Rs 225. We see the market gaining in the first hour of trade providing good opportunity for the weak hearted to exit.PTC India, prime Securities, Fedders Lloyd and Zensar Technologies are some of the stocks to watch out in today's trade.

Nifty Below 4950 As said yesterday

Book Nifty Stbt in good profits

Lower opening on Cards, All eyes on RBI

Unitech, Suzlon, DLF Ltd, Jaiprakash Associates and Idea Cellular were among the major losers among the NSE-50 space and these scrips might continue to extend their losses in to today's session. The new listing, Thinksoft Global Services closed at Rs 164.30 on the Bombay Stock Exchange on Monday, up 31.44 per cent against the issue price of Rs 125.This is the best performance by far, by any IPO in the current financial year.

We are headed for a lower open this morning and things might get worsen depending on central bank stance on the interest rate. We believe that there will be no change in the interest rates, but the bank might moot raising the CRR, which might spoil the mood. Any positive surprise might fuel a rally as lot of shorts will run for cover, if this happens.

Book profits in Think Soft, as the company is clearly over valued at current levels. Also, stay away from banks as they will be under tremendous selling pressure, barring some good news from the RBI.Abhishek Ind, Crompton Greaves, IFCI, Jet Airways, Reliance Power and RNRL are some of the stocks to watch out in today's trade, ahead of the earnings tomorrow

Mid cap banking in Pressure

The Nifty could swing in a 5000-5100 range in the near term. On the downside, watch out for 4940 and 4825.

Banks will be in the limelight ahead of tomorrow’s RBI policy review

Looks like the bulls are suffering from fatigue after a seven-month rally. Most of the good news appears to have been discounted. The road ahead will be a little bumpy as the bulls look for incremental positive news. Today we expect the market to open on a cautious note

Monday is likely to be a busy day as a lot of companies are reporting results. Some of the companies to watch are Bharti Shipyard, Dabur India, Empee Distilleries, GMR Infra, Harrison Malayalam and Kalindee rail are some of the stocks to keep a close eye on. Overall, not a great day for bulls. But do not go short in the market, as we believe that the market is likely to recover from a gap down open

We like Jubilant at current levels as the company guidance for 2010 is great and there might be a short term trigger for the scrip, as the company plans to divest a part of ist speciality chemical business in the coming days. We recommend a buy n the stock after some consolidation at Rs 225 levels.

Pay back time for the bears, Stocks poised to surge

Bulls are all set to go for a kill on opening bell after a terrible day yesterday
As mention yesterday Nifty close above 4980 is good ,result is in front of you today

Bang overseas is one stock that is looking interesting in a disappointing market. The stock after falling to a 52 week low of Rs 43 hit two consecutive circuits to end the day at Rs 58. Cambridge Solutions, Finolex Cables and Granules India were other stocks that remained strong and stood out in the falling market.

3i infotech Ltd is one stock to keep a close eye on ahead of the quarterly numbers. The stock looks attractive at Rs 93 and might provide a positive upside with its quarterly numbers. Expect a target of Rs 110, on this stock if all goes well.Alpha Geo, Core Projects and Dr Reddy Labs are some other stocks to watch out in today's trade.

Overall, it might pan out to be a great day for the bulls after a free fall for the past few days. We recommend short term traders and investors to buy stocks as there is likely hood for short term rally in the markets and who knows, a new 52 week high for Sensex might be in the offing for the Sensex next week

Reality Space weak

We see the market opening lower followed by a dip of nearly 200 points. Do not short this market, as we believe that there will be a rebound in the later half of the day, as we have been sliding for the past few days.

Allahabad Bank, Bhushan Steel, Biocon Ltd, Hanung Toys and Global Spirits are some of the stocks that are worth keeping on the radar ahead of the earning reports

CAIRN on Radar

ONLY Above 5080 Nifty Bulls take charge

Book nifty Stbt with Profits

Hpcl to Rock

Stocks on Dalal Street are likely to trade in a narrow band after taking beating due to the feud between the Ambani brothers. Expect the Sensex to trade within a band of 50 to 60 points as we do not see any decisive move in one direction in the near term

We recommend staying away from Realty and Banking stocks in the short term, as we believe that they have run up too much and too fast.

Tech Mahindra is likely to be under severe pressure today after reporting disappointing numbers with profits down more than 44 percent for the quarter. The company's new acquisition Satyam computers is now under the gun as the company might be delisted from NYSE for not filing its quarterly reports.we do not think it is a possibility. We recommend shorting Tech Mahindra at Rs 941 for decent profit.

Midcap space remained in limelight even on a down day. XPRO India, Pritish Nandy Communications, Welspun India and Hexaware Technology and Bajaj Hindustan were among major gainers yesterday. As recommended the new listing Euro Multivision remained subdued and lost more than 6 percent to close at Rs 41.

Allahabad Bank, Bhushan Steel, Edserv Systems, Hanung Toys and Larse Toubro are some of the stocks to keep an eye on for today's trade.Yes Bank is another stock that is in a new range at Rs 254. The stock gained more than 4.8 percent after investment bank Morgan Stanley came out with a bullish note on the stock