Markets to trade in a narrow band, Midcaps to dominate

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Bears below 5085 levels only

Stocks in Mumbai are likely to open flat but trade in a narrow band for most of the day as there is a tug of war going on between the bulls and the bears. Some investors are booking profits after the Sensex has more than doubled since its March lows, where as the money sitting on the sidelines is helping things towards the bulls camp.

Meanwhile midcaps remained in the spot light, as it has been the case for most of the year. Transport Corporation of India, Banco Products, Apollo Tyres and Escorts were some of the stocks that were among the top gainers on huge volume. We like Transport Corp and Escorts in this space. Satyam Computers was another stock that showed great deal of activity. The stock surged more than 7 percent to finish at Rs 117. We do not recommend buying the scrip at current levels. Traders could keep Excel Infoways, TV 18 and NIIT Technologies on their radar ahead of the quarterly numbers

No stopping for the bulls, the up move continues

The stock of Glenmark Pharma might hit a bump on the news that it received a warning letter from USFDA for the Codeine drug.

Euro Ceramics, Balaji Telefilms,Hitachi Home and Raj TV are some of the stock to watch closely ahead of their quarterly numbers.Even though the investors are skittish on the kind of run up we have seen,the earnings have beaten the market and the guidance till now has been good. We expect the bull run to continue for another week. So traders can place their bets, while investors could wait for a pull back.

BULLS BEHIND CAIRN

Risk appetite is showing no sign of abating as of now. Every fall, irrespective of its intensity is likely to entice fresh buying. The downside appears to be limited unless something horribly goes wrong in some part of the world.

Let Celebrate Nifty 5200 in Coming days

Nifty Btst book around 5090-5100

Vivimed Labs hit 10 percent circuit at Rs 114 after a hedge fund arm of Reliance Cap picked up major stake in the company and reports are out that the company might come up with a preferential offer soon. Expect few more circuits.

Gokul Refoils and TTK Prestige were among the major gainers as the investors flocked these counters on hopes that they will report good numbers this week. Reliance Communications at Rs 247 might come under tremendous pressure after an independent auditor set up by the Department of Telecom to examine the accounts of Reliance Communications has concluded that the company has under-reported revenues of Rs 2,799 crore to the Government resulting in under-payment of Rs 315 crore as licence fee and spectrum charges during 2006-08. Stay away from the stock.

The market is likely to open high and might trade up at least in the morning session. We expect Bulls to dominate the market. Expect brisk activity in Reliance Communications. As we have mentioned before , do not go short in this market. We believe the markets will continue their up trend today and bulls might take the opportunity to make their presence felt.

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RNRL at Rs 83 is our favorite for the day, as the a potential settlement with RIL is likely looking at the recent news reports of Anil calling for truce

As expected the Sensex has given up some gains from the week before by losing 2.5%. We expect the benchmark to consolidate here, although small gains are not ruled out in the short term. We see some more upside from these levels, but do not expect another 100 percent gains from here. So the tone remains cautiously optimistic but do not expect whopping gains. Please do not go short in the market, as we think that we are not done with this rally. So, one should hold on to quality stocks and ride the rally for some more time. The easy money has already been made and now it is time for quality stock picking.

Hotel stocks were on Friday on news that a big FII is active in these counters

Nifty above 4900 is Bulls

Infosys Good Results as Said Yesterday

Mumbai markets might turn volatile today as investors get ready to face the earnings report from IT bell weather Infosys Technologies. Stocks are headed for slightly positive open but Infosys might attract all attention and is likely to set the tone for the trend on Dalal Street. Today is a good day for the traders to stay on the side lines

There are rumors in the market that a big FII has a short position in Nifty futures and is probably manipulating the moves in the market.

We are 'Neutral' on Infosys stock before the quarterly numbers.Given a chance, we would side with the bears on this stock at Rs 2210.00. The stock had a decent run and the positives are probably priced in to stock. So stay away from this stock for now.

The so called 'honey moon' period for Midcaps is still in progress with speculators still active in the market.Gammon Ind, W.S.Industries, Sun Pharma Research and Tantia Constructions were among the gainers in yesterday'strade. Mercator Lines jumped nearly 10 percent as the Baltic Index continued to gain for the third day in a row.Infosys, Piramal Life, South Indian Bank and Madhucon projects are the stocks that the traders should watch out from a day trading perspective. We advice traders to stay away from the market today, as we might witness wild swings.

It is 'Bonus time' for Bulls

Stocks are likely to have a stronger open in the first hour of trade, as buyers might get back to the market after a day of correction. Bonus news from Reliance and positive sentiment following better than expected quarterly numbers from global major Alcoa are likely to provide the much needed trigger for the bulls

Reliance Ind (Rs2,100) came up with a pleasant surprise after the market hours by announcing a 1:1 bonus issue. This is likely to boost the stock by more than 5 percent for the day. We recommend investors to sell the stock at any price above Rs 2,250.00, as we see it as a short term trigger for the stock.

Zee Enterprises is another stock that looks attractive at these valuations (Rs 243). The company looks attractive at these levels, as things are going well for the company in many ways. Zee TV nudged Star Plus to take the second spot among the general entertainment channels.

Second rung counters continued to gain even in a falling market. Glory Poly Films, Onward Technologies, Brand House Retail and Yes Bank were among the briskly traded stocks. Godrej Ind crossed the Rs 200 mark as investors bid up the shares ahead of Godrej Properties IPO. We are of the opinion that the sell off in the market yesterday, on concerns of falling rupee is clearly over done and short term traders should use this correction to buy the dips, as the trend favors bulls in the short term

Book nifty BTST in good Profits

FROM LAST TWO DAYS WE RECOMANDATE TO BUY ON DIPS.MATKET GAVE CONTINOUS 2 DAYS OPERTUNITY TO BUY.WHEN WHOLE INDIA IN SHORT WE ARE IN BUY FROM DIP.AND GOT A VERY GOOD RETURNS.

Be Bulls above 5050 levels and Bear below 5005
HOT PICK:

BUY BGRENERGY ABOVE 452 SL 440 target for CLIENTS

BUY PUNJLLOYD ABOVE 265 SL 260 TARGET
275=290

We recommend owning Metal stocks in today's trade, as we believe there is a likely hood of a run up in the commodity prices on the weakness in dollar.SAIL and Hindalco are our picks in this sector and Adhunik Metaliks might offer decent return for risk takers. Jet Airways gained for the second day in a row and now it is time to book some profits in this stock at Rs 425 levels.

Second rung counters IT companies like FCS Software, Omnitech Info and 3i Infotech were active in yesterday's trade and we advice investors to book profits in FCS Software at Rs 115 levels. Investors with risk appetite could look at the stock of Energy Development at Rs 75 level for quick gains.Day traders could keep Mastek and Advanta on their radars for quick gains.