Dalal Street to see a subdued start

We might not see any major reaction to global events today, just like the street responded over the last two months. But one should clearly note the current rally is purely
driven by cheap dollars. The depth of European crisis is not known while US economic data is mixed and clearly indicates a slide. Next week's RBI policy (16th Sept) meeting is the final hope for bears or this rally might have legs to run. Better safe than sorry.

Cement counters have witnessed huge momentum in yesterday's trade. Keep an eye on power and second run IT space to receive the baton from cement counters.

For today we do not see a major down move in Nifty with side counters doing well

Indian markets to consolidate

Indian markets are most likely to start the day flat after a big rally on Monday. Investors flocked to stocks and pressed the panic button but this time for buying

On Monday, 118 stocks breached their 52 week highs on Bombay Stock Exchange. Midcap and smallcap stocks are having the best of the times. With large caps leading the way with Reliance Industries Ltd. yet to participate in the rally, one can expect a big rally if Reliance participates.

Is cheap money leading India's rally?

Thanks to central banks around the world holding on the low interest regime, cheap dollars are finding their way to Indian markets. There is a gush of liquidity flowing into the markets at present. We believe this mad rush for participating in India's economic growth in the next 2 years will only spike up. But what makes us jittery is present day global economic situation coupled with the high momentum in speculative stocks. Inflation is alarming despite of RBI is taking right steps with intermittent rate hikes.

While investors tend to get carried away by moves like yesterday, we advice them to hold their nerve as the quality of stocks that are moving up was never good from the last one month. Investment positions are not to be disturbed but we would avoid long trading positions for the next 1-3 months. We stick to our short term bearish view though technicals predict a big move above 5600 (on a closing basis) for Nifty

Buying rush to continue in small and midcaps

Dalal Street is all set to open higher on positive global markets and better than expected jobs data in the US. Asian markets opened the day in green and are expected to close the day flat

Global markets are expected to trade the first half of the week in a range bound fashion. US Markets are closed for labour day week end on Monday. Global equity investors are on sticky turf whether to hang on with their investments or withdraw the same.

Indian Economy - Tough times ahead

Indian economy after witnessing best of the times courtesy government stimulus, increased consumer spending, is ready to hit a road block soon in the form of another rate hike, global market correction.

Weak economic data indicators are pointing to a slide in the US economy. DStreet US market analyst Satish Bhogadi adds "We do not expect a double dip but there will be a considerable correction in the US equity markets. There will be no betterment in the current situation for the next 4 months"

Indian equity markets have done reasonably well outperforming rest of the crowd in the last 6 months. But dissecting the FII data reveals that the inflows have started slowing and might see some outflows in the coming day too. Having said that there is no second thought about the state of Indian markets from a medium and longer term perspective.

We expect this to continue for a shorter phase (1-3 months) and this kind of short corrections will augur well for the long term health of the market.

We see another range bound session with minor volatilitly with small fish jumping in the pond

Buying frenzy to continue in smallcap stocks

Dalal Street will open to a flat to positive global cues on Friday morning with smallcap stocks likely to outperform the benchmark indices.

Smallcap Frenzy

Smallcap stocks are most likely to continue the buying frenzy for some more time. Investors are adviced to hold their nerve before getting into these companies. Many stories will be doing rounds, trying to promote a stock

Also Read : Stocks in news : Zylog, Tata Power, Petronet LNG, GVK Power

"We expect this buying frenzy to continue till mid-next week. Investors are adviced to book profits at regular intervals."

Suzlon Energy Ltd. stock is likely to be in the limelight today also after a surprising short squeeze yesterday.

A subdued trading day with action in smallcap space.

Dow scores double ton, Indian smallcaps on the run

Indian markets - The bull is back ?

Yesterday's buying frenzy is likely to continue today also especially in the midcap and smallcap space. Indices will gap up during the initial trades only to cool-off and trade in a band. The action will be shifted to the speculative counters. We do not expect any negative fireworks today also. But at the same time gains will be muted.

This upmove is an oppurtunity for investors and traders to trim their positions. Underlying stregth of the global economy is very weak except for few of the emerging economies like India, China and Brazil

Fortis Healthcare Ltd. is planning to list its shares on Singapore stock exchange and the shares of its pathology arm, Super Religare Laboratories, in India, accoerding to the chairman of the company Malvinder Singh.

Reliance Industries Ltd., through its investment arm,has picked up an additional 0.68% in EIH Ltd on August 31 through a single offmarket deal, pushing it close to the open offer threshold.

State-owned National Aluminium Company Ltd. today said it was considering selling stake in its $3.9-billion (over Rs 18,000 crore) aluminium project in Indonesia in lieu of acquiring equity in coal mines in the island country. - BS

State-owned Indian Bank plans to sell assets worth Rs 900 crore to an asset reconstruction company (ARC).

AstraZeneca Laboratories AB, the London-headquartered pharma giant, is set to ink a deal with Aurobindo Pharma Ltd. for supply of generic finasteride, which is used in the treatment of prostate issues and male pattern baldness.

Tata Consultancy Services Ltd. bought Diligenta, a Unisys insurance unit and along with it picked up a £250m deal


Clutch Auto : Stock in top gear

Finally, green ticks are coming

Dalal Street will open to positive global cues today and is likely to trade up for the entire session. We expect markets to shake out one more time before going down. From an investor perspective sitting near the fence and watching the game is the best strategy.

Q1 GDP numbers failed to cheer the investor crowd as they appeared to be on the expected lines. Expect midcap and smallcap stocks to outperform the indices today.

DStreet market analyst Venkata Srikanth says "We advise our clients to press the 'Cashout' button when ever they get a chance in the intermediate upmoves. We expect the market to undergo a severe correction in September

Stocks in news today : Kingfisher Air, NMDC, Natco Pharma

Kolkatta based Uttam Galva Steels Ltd. which was in limielight last year when Mittal acquired 50 pct stake in the company.

From the last one year stock was trading in a narrow band of Rs 100 - Rs 140. The stock showed great strength in yesterday's shaky market. While it is too early to come to a conclusion about a medium term bull trend, one should clearly wait and watch for Rs 140 levels to be taken off with volumes.

A two times close above Rs 140 level will place this stock in the bull zone.
One Year - Weekly chart of Uttam Galva

Bearish clouds cover Dalal Street

US Markets resumed the slide yesterday after one day of pull back rally on Friday despite economic data falling in line with expectations. Indian market strength is weak, presumed from the last 2 sessions.

Reliance grabs EIH stake

Reliance Industries Ltd. paid Rs 1,021 crore, which is a 22 per cent premium on the company’s current market price of Rs 151 a share, valuing EIH at Rs 7,200 crore. RIL bought 14.2% stake from EIH Ltd. promoter P R S Oberoi and two other promoter entities, Oberoi Hotels Pvt Ltd and Aravali Polymers LLP. Reliance will not participate in the management activities and is treating this investment as a diversifying act.

Hotel & Entertainment stocks are likely to witness strong action in today's trade following this news.

Q1 GDP

The official GDP, a measure of a country's overall official economic output, figures for first fiscal quarter ended June will be released on today. While economists expect 8.6% to 9.2 % growth rate for the Q1 ending June, we at DStreet believe consolidation in economic growth will be witnessed in the coming quarters.

Market momentum will be impacted by Q1 GDP numbers.

Lackluster trading

Markets lack conviction and rightly so the retail investor participation is at a low. We believe this time the retail investor is correct in his own terms and any decent correction will see him taking a plunge into the market.

Lot of cash on sidelines will provide a cushion to the slide in the market. We are in for a long term bull market but yes not with out a meaningful correction