Dalal Street likely to open in the red, only to bounce back

Dalal Street : Watch for a bounce

Stocks on dalal street will open negatively to the global cues but might see a sharp bounce today. Bank stocks are likely to be under pressure today also. We advise subscribers to slowly get out of bank and auto sectors for the next six months except one or two stocks which still look under valued. We had a coverage today on a smallcap steel stock that is ready to deliver approx 70 pct gains in the next six to eight months.

Focus on Infrastructure stocks, second rung IT & metal stocks and Realty might see a surprise upmove in the coming days

Another volatile day on cards, Asia trending lower

Indian markets will open to mildly negative cues from the global markets with US deflation worries causing nervourness among investeor community. Wall Street ended marginally in the red with Dow losing 22 points and Nasdaq down by 15 points.

Nikkei is trading down by 0.3 pct while Australia is down by 0.2 pct. Australian dollar hits new 26-month high against the US dollar on thursday while New Zealand second-quarter GDP went up by 0.2 pct, below economists expectation.

Dalal Street : Waiting for more inflows or cues ?

After a mamouth rally Dalal Street is waiting for the next step. While F&O expiry slated for next week might add more volatility to the indices, Markets still look good for another upswing with Nifty support level pegged at 5800.

Infrastructure stocks are showing some life in yesterday's trade. Watch out for offbeat sectors like Ceramics to buzz on the street. While power sector started participating, there are many sectors that missed the rally. While Banking, Auto sectors are likely to be the laggards in the next 6 months to one year time frame, we expect Realty, Infra to pick up pace in the coming months

Indian market to extend the rally, caution warranted

Dalal Street is likely to open in the positive zone on Wednesday morning with sectoral rotation pushing the markets up. IT pack lead the index gainers while Ranbaxy Laboratories Ltd. extended the dream run, gaining 14 pct in the last one month.

Tata Power Company Ltd. joined the winners league with an upmove of nearly 3 pct. GVK Power & Infrastructure Ltd. is another interesting stock in this space. Infra stocks are showing signs of life with IVRCL Infrastructures & Projects Ltd. inching up thanks to the new IPO's from the same sector.

Asia trading flat, Bernanke keeps rates steady

The US Federal Reserve for the first time raised direct concern that the nation's economy may be headed into a deflation trap and expressed new readiness to take more action to avert a serious turn for the worse.

Wall Street closed flat pushing the Asian markets to trade in a narrow band.

Avoid midcaps and smallcap stocks

Midcap and Smallcap stocks are going through a silent correction as index stocks extend the rally. We advice investors to avoid the second run stocks and wait for a decent correction before accumulating quality stocks.

BHEL is likely to grab index fund interest as the stock has underperformed in the last one month. Keep an eye

Wall Street in top gear, S&P breaks out

8 IPO's hitting the market

Dalal Street is unperturbed by the new IPO's. Ideally when big ticket IPO's arrive on the street, liquidity issues will hit the secondary markets. But given the current Euphoric situation we do not see this as a worthy discussion point. The companies, which are hitting the primary market this week include, Orient Green Power (Rs 900 crore), VA Tech Wabag (Rs 500 crore), Electrosteel (Rs 285 crore), Tecpro Systems (Rs 268 crore), Ashoka Buildcon (Rs 225 crore) and Gallant Ispat (Rs 40.50 crore),Ramky Infrastructure (Rs 530 crore) and Cantabil Retail (Rs 105 crore).

All eyes are on Nifty breaking 6,000 levels today and with out much fan fare Nifty is likely to gap up above 6000 but there might be a small shakeout once the levels are taken out. Trade with caution till the 6000 levels are digested

Following stocks might see intraday movement (to the upside) today.
Zicom Electronic Security Systems Ltd.

Sun Pharma Advanced Research Company Ltd.

Triveni Engineering & Inds. Ltd.

Varun Industries Ltd

PTC India Ltd

FII flows to extend the momentum,watch out for realty midcaps

Dalal Street opens to a positive optimism on Monday with FII inflows ready to smack this market to higher levels. US Markets are exactly at the resistance level and for now, is unable to crack the resistance despite of good news.

Asia trading weak

After a great trading week,Australia opened weak on Monday morning with Japan's Nikkei closing on account of a holiday. We expect a dull day for global markets today.

Mining Policy :

Ministerial panel apporved a mining law that seeks to cut the time taken to allocate mines and simplify a process that currently requires companies to pass through a maze of approvals from federal and state governments. The new law also proposes sharing profits between miners and local residents in an effort to reduce opposition to projects.

Industry is against the profit sharing while rest of the aspects seem to be 'OK' with them.

Mahindra & Mahindra Ltd. has reportedly signed a deal to buy aircraft parts-making machinery from Boeing Co.'s plant in Melbourne, Australia. Stock is likely to be in action in today's trade.

WSJ reports that Reliance MediaWorks Ltd. is planning to open another 60 screens in India and 20 in the U.S. this fiscal year through March 2011, quoting a senior executive.

VIX on the rise

Volatility Index (VIX) of Nifty has been rising along with Nifty. It closed at a 20-day high of 19.4. This signals caution, as fear has crept into the market.

But underlying sentiment is quite bullish and we do see any suddent surprises to the downside now. While experts are of the opinion that a 3-6 month rally is in the offing and retail investors are likely to jump in soon.

Dalal Street to see a subdued opening, Bank stocks might witness selling pressure

Banks not inclined to raise rates

Reports indicate that banks are unwilling to pass on the rate hike to the customer. RBI yesterday raised repo rates by 25 basis points. Stocks from the sector might see some pressure on this news.

It would be interesting to see what sector might take charge in case of a renewed upmove today. But Banks and Autos will lead the correction in case yesterday's slide extends.

Today's trade is very important from a short term direction perspective. For investors this market is too confusing to invest in. But there are many stocks that have not participated in the rally with better fundamentals. We see these stocks performing well in the next one month irrespective of a correction

Can Mr.Subbarao take the bull by the horns?

Global markets extended the recent rally with minor gains on Wednesday as Wall Street closed half percent. With no major news flow, equity markets across the globe are subdued with a positive bias. Japanese markets are exceptional due to Yen driven news. Indian markets are a different story alltogether.

Asia up on thursday

Asian markets are trading up thursday morning as Yen extends wednesday's slide on fears of further intervention by BOJ. Nikkei is up 0.7 pct while Australia is down 0.3 pct

RBI Policy meet

In what can be termed as the most significant event in the last 2 months, given the current euphoric situation RBI will be announcing the changes to the monetary policy (if any) in a mid-quarter review. Pranab's recent comments indicate that a rate hike is surely in the offing.

In case RBI gives the hike a miss, we are in for a bigger bubble. Bulls will go on a rampage if RBI fails to arrest the inflation. A 25 basis points hike would take its repo rate(the rate at which it lends to banks) to 6 per cent and the reverse repo rate(at which it borrows from banks) to 4.75 per cent.

Finally the D-day has arrived and it is ideal to stay mum for today instead of taking any positions with out proper interpretation. Risky traders can play the volatility. The positive buzz is getting too strong these days. We are still not clear on the direction of the market but continue to believe our old version of correction though the chances have slimmed down a lot.