Sensex to plunge in early trade on global woes

Indian markets are expected to plunge opening on bell, as fears of slowing growth return to the market. Expect the benchmark index to lose more than 2 percent or more than 300 points for the day. One can expect selling across the board as funds might dump their holdings and lock their profits.

On Wall Street stocks crashed under the growing belief that the global economy is weaker than many investors expected and likely to stop companies from hiring.The Dow fell 268.37, or 2.6 percent, to 10,002.18. The Dow has fallen 723 points, or 6.7 percent, since closing at a 15-month high of 10,725.43 on Jan. 19.The broader Standard & Poor's 500 index fell 34.17, or 3.1 percent, to 1,063.11.

Asian stocks are off to a terrible start taking cues from the performance of U.S. markets. Both Japan's Nikkei and Australia's ASX 200 lost more than 2.5 percent for the day. Commodity stocks were hit hard this morning.

As expected, Metal and Realty stocks were crushed yesterday, and we might see a repeat today. expect the sectoral indices to lose more than 3 percent for the day. We advice investors to exit Auto stocks like Tata Motors, Mahindra and Maruti. Sell Hindalco, Tata Steel, Sterlite Ind and Sesa Goa, as these stocks might see a free fall today.

Gold futures fell sharply along with other metals and commodities on Thursday, as concerns about economic growth and debt woes in Europe fueled a rally in the dollar. Gold for April delivery slumped $49, or 4.4%, to finish at $1,063 an ounce at the New York Mercantile Exchange.

We recommend investors to book profits in the following stocks, Shree Astha Vinayak, which has gained over 80 percent this week. Dwarikesh Sugar, which has gained over 70 percent over a week. Also exit shipbuilding plays like ABG Shipyard and speculative counters like ThinkSoft, Resurgere Mines and PVP ventures.

Markets to consolidate at current levels

Indian markets are likely to take a breather after putting in a good show on Wednesday. Expect the benchmark index or the Sensex to trade in a band of 50- 100 points for the day. However, there could be a flurry of activity in the Midcap and Smallcap stocks

Metal stocks were prime beneficiaries of the rally yesterday which helped the sectoral index gain more than 4 percent yesterday. Realty was another sector that was bid up in yesterday's rise. we recommend exiting metal counters as we might see profit booking coming in the metals space. Sterlite Ind, Hindalco and Tata Steel might see some selling today.

The party in the Midcap space continued Shree Asthavinayak, KPR Mill, Infinite Computer, Glory Poly and Inox Leisure were some of the major gainers in this space. Reliance Natural is another stock that is looking interesting as there was great volume action in the counter on a 7 percent gain.Rajesh Exports and Astra Micro were two other stocks that looked strong in yesterday's trade

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Nifty Only buy above 4940 levels, otherwise short on rise.....below 4800 it is more weak

Stocks to trade higher on D- Street on positive global cues

The stock market indices in Mumbai might get a nice lift from the positive momentum in global equities. There might be some value buying and short covering in the market,that could lead to a 0.8 to one percent gain on the benchmark index.

Consumer Durables stocks were leading gainers on Sensex, while FMCG and IT stocks remained laggards. It was a come back day for the Midcap and Smallcap stocks, as the indices tracking these stocks gained 1.8 percent and 2.7 percent for the day.

Agri Commodities were on fire yesterday with LT Foods, KRBL locked in 20 percent circuit. Other gainers include Hitachi Home, Subros Ltd and Elgi Equipments, which managed double digit percentage gains.Stocks like Great OffShore and cement stocks like ACC and Gujarat Ambuja might be great BTST plays in the current market.

Overall, a positive day for the markets in the offing, and any rise in the market should be used to pare long positions, as it is not the time to have overexposure to equities

Sensex to move side ways after a volatile week

Stocks on Dalal Street are likely trade in the green after putting on agood show on Friday.we have seen some buying coming in at lower levels giving much needed support to equities. Expect the benchmark index or the Sensex to trade in a band of 50 to 100 points and most of the action is likely to be stock specific

The Reserve Bank of India on Friday, left benchmark rates unchanged and instead boosted the CRR reserve by more than forecast, to 5.75 percent.The central Bank also raised the growth forecast from 6 to 7.5 percent for the year.Banking stock had a liitle relief rally on the news that the interest rates were left unchanged. IFCI, Uco Bank, RCF, Moser-Baer India and IDBI Bank were the top gainers in the index.

Smallcap and Midcap stocks showed some signs of life on Friday with both the indices gaining more than a percent. We advise investors to book profits on every rise, and only hold some positions in the Nifty and Sensex stocks. It is a good idea to stick to the big names as we believe that the largecap stocks will out perform the Midcaps if there is a recovery in the near term

Rate decision to decide the fate of the markets

Bears might return to the market after taking a pause yesterday, as investors take the exit path following big gains for the past one year.Expect the benchmark index or the Sensex to lose nearly a percent for the day. Midcaps and Smallcap stocks might feel the heat

Real Estate and Metal stocks might feel the pain for another day. Auto majors might also feel the heat as there might be selling in Tata Motors, Mahindra and Maruti.The much awaited meeting of the RBI will be held today. There may be a heated debate whether to start raising interest rates today and there is a strong chance that the banks to set aside more cash to temper inflation.The Reserve Bank of India may raise the cash reserve ratio to 5.5 percent from 5 percent, the first increase since 2008.

We are of the opinion that Mr.Subbarao will keep the rates unchanged but will take action on the CRR front. Overall, a bad news for the bank is in the offing, much of which is baked in to the prices of bank stocks. We might see some selling in Autos ans some Banks following the news. Please avoid going short in these markets as everyone in the Street is expecting a fall. Moreover, Indian markets have not participated in the up move we have seen in the Asian peers yesterday, so the magnitude of the fall might be limited.

Bears might take a break after a busy day

Expect the benchmark index or the Sensex to gain more than 150 points or close to a percent after the massacre yesterday

We do not advise buying stocks at current levels and every pull back should be used to trim your holdings. We foresee a better entry point for investors with a long term horizon. we are of the opinion that investors and traders should take a break from equities at this point of time and revisit the markets after a month or so, before placing their bets. We see the Sensex facing severe headwinds at 16,450.00 level from a short term perspective