Budget to decide the fate of the markets

Nifty in ranged today levels sms to all clients

Expect the unexpected,as the markets have discounted an uneventful budget. We see some big gains in select stocks, as there has been relatively, less or no movement in the stocks leading to the budget week.

It is strange that the market has not seen any action in the last two weeks prior to the budget. The Sensex has gained more than 6 percent last year in the 2 week period prior to the budget. We have seen a 1 percent move this year. The volume in the exchanges has gone down by nearly 50 percent, reflecting the disinterest in the market. It is safe to say that the effect of speculators will be less during this session and hence less volatility.

We are not sure about the budget sops, but one thing is for sure, Solar and Renewable Energy is likely to get a big boost in the form of tax sops and MoserBaer might be a great bet in today's market. The stock presents as a good trading opportunity at Rs 73 level.Hotel, Textile and Education sectors might get be other sectors that might get some sops in the budget.

Indian stocks markets are likely to open lower following negative global cues and nervousness among the investors ahead of the budget announcement.Futures expiry is likely to be the key to the direction of the benchmark indices this week. Expect the Sensex to lose nearly a percent or 150 points onces in a day

Realty stocks were surprisingly strong, while weakness in the Auto stocks was a major drag on the indices. We might witness continued weakness in this segment, as the run up has been huge in the Auto stocks.Maruti was hit hard followed by Tata Motors and M&M.

We have seen some unwinding in Sugar stocks following a slide in the global sugar prices. Dhampur Sugars, Rajshree and Mawana made the top losers list. We think that the worst is not over for the sugar pack, yet.Speculative activity continued in stocks like Infinite Computers, Pochiraju Ind and Atul Ltd. The new listing Aqua logistics fared well on its first day with a 10 percent gain at Rs 243 on a volume of 27 million shares.

The market is likely to open in red and might remain sub-dued for most of the day. We advice investors to sit out of the market and wait for things to clear up, before taking positions.Stride Arco, Clutch auto, ANG Auto and Mphasis Ltd are some of the stocks to keep on your radar.

Markets feeling budget Jitters

Long Nifty only above 4940

Stocks on D-Street might see another day of lacklustre trade, following a flat close on Monday. The market is looking for cues from abroad, as there no news on the domestic front. Investors look tensed ahead of the budget later this month and we have not seen bullish or bearish positions in the market. Expect the benchmark index or the Sensex to trade in a band of 100 points for the day

IT and Realty were the surprise winners in yesterday's trade. We might see some selling and profit booking in metal and Realty counters today. Stay away from metal stocks, we are bearish on this sector, as the strengthening dollar and credit tightening might trigger some unwinding in this space. Sterlite Ind, Sesa Goa, Tata Steel and Hindalco are the scrips to avoid in the short to medium term.

In the Midcap space, Investors in Thinksoft remained thought less, as the scrip was locked in lower circuit again.Inox Leisure was one stock that rocked yesterday's session, following an open offer by Reliance Media to Fame India shareholders. investors bid up the stock on the hopes that Inox will realize decent profit on the Fame India shares, it has already acquired. Our favourite Indo Tech transformers managed to stand in the top gainers list. Texmaco Ind, Bata India and Infinite Computers are some of the stocks to keep on the radar from a day trading perspective

Time to prepare yourself for Budget

Buy nifty and book profit

Bulls on D-street look to dominate the street, after a loss of close to 1 percent on the benchmark indices, on Friday. We expect the market to gap up in the open and then crawl from there all through the day. Expect heavy action budget themes, as the stage might set for these stocks

Metals and Realty sectors which suffered heavy losses on Friday might try to recover their losses. The correction on Friday hit the Mid and Smallcap stocks, more than the heavy weights, which lately has not been the trend in the previous corrections.

Watch out for Power, Rail related and some select cement stocks to firm up before the budget fever begins.Banking is another space that looks interesting at the current levels. We like Century Enka, Heidelberg Cement, Ind-Swift labs for today's session.Pidilite Industries,Orchid Chemicals and ABG Shipyard look sharp from a technical perspective.

Stocks set to tumble, as U.S. begins unwinding stimulus

Although we are negative about the broader market, traders could make bets in select counters, Cement and Power in particular. We like cement stocks in the short term, as the news of price hike might bode well for the companies in the short run. Metals is one space we would like strictly avoid in the current market scenario. So please stay away from Hindalco, Tata steel, Sesa Goa and Sterlite Ind at current levels.

Ssome Midcaps like Omax Auto, Hydro S&S, Nilkamal Plastics and NELCO showed some strength in a week market. We see the trend continuing in Midcap space, while largecap stocks might see some consolidation at current levels.

Stocks to trade in a narrow band

Stocks on Dalal Street might open flat to positive on Thursday, after a gain of more than one percent on both the Sensex and Nifty. We expect the major indices to trade in a band of 0.5 percent for the day, as there is a likelihood of profit booking at higher levels. However, we should see buying in select counters like power, which might be major beneficiaries of budget sops

Consumer Durables and Metal sectors were the leaders in yesterday's trade, helped by gains in Tata steel, Sterlite Ind and Hindalco.Telecom counters remained strong with buying activity in Bharti Airtel and Reliance Communications. We might see some profit booking in Metal counters today, so please stay away from getting in to these stocks at higher levels.There was a flurry of buying orders in stocks like On Mobile, Godrej Ind, Fortis Healthcare and Videocon Ind following the announcement that these stocks will be added to the F&O segment starting Feb 19, Friday.

We like Power and power related Midcaps like Indotech Transformers, Voltamp Transformers and Emco Ltd. We see this as a great way to participate in the pre-budget rally. Cement is another sector that might firm up in the run up to the budget. Heidelberg Cement and Prism Cement are the stocks to watch out in the Midcap space. Shares of Thinksoft Ltd failed to find buyers for the second day in a row with the scrip ending lower by 20 percent at Rs 318

Book nifty btst with good profits

Indian markets might open higher on Wednesday following a rally in U.S. and global markets. This will be the second day of big gains for equities after a late surge in the afternoon session. we expect the Sensex to gain

Metal and Auto stocks were the front runners in the market yesterday. Metal stocks might repeat the feet again today, as the falling dollar might help, Steel, Aluminum and Copper stocks.After reaching a nine-month high against the euro on Monday, the dollar slipped slightly Tuesday after fellow euro-zone countries agreed to give Greece one month to show it can right its unbalanced budget.

Power stocks might outperform the rest of the market as the Indian Power stocks are likely to mimic big gains in Power stocks abroad. Oil stocks like Cairn Energy and exploration stocks like Selan Exploration might be upbeat after Oil prices spike by $4 on NYMEX.

Midcap stocks continued to fly high again on D-Street. Varun Ind, VIP Industries, Brand House Retail and United Phosphorus are some of the stocks that look strong from a traders perspective. The dream run of thinksoft looks to be over. The stock hit lower circuit in the first hour of trade. There are rumors circling that a big operator who is associated with this counter is in trouble (The scrip will move to T to T segment start ing Feb 19, 2009). Hexaware Technologies, Great Offshore Ltd, Cairn India and Hindustan Oil Exploration are some of the stoks to keep on your Rada