Stocks set for a small bounce, after a day of correction ============================================
Stocks might see a small recovery after a losing streak this week. Expect the Sensex to trade in narrow band with an upside momentum. We see the index gaining 0.5 percent for the day. Most of the action is likely to be concentrated in midcaps and select speculative stocks. U.S. stocks on Wednesday bounced higher as investors found value in recently battered energy and technology shares, even as worries about the fate of Lehman Brothers and other financials kept a lid on the market. The Dow Jones Index gained 0.34 percent, where as the Nasdaq gained nearly 19 points or 0.85 percent. Asian stocks declined for a third day after Lehman Brothers Holdings Inc. reported a record loss, reviving concern financial companies will add to write downs. The MSCI Asia Pacific Index lost 0.4 percent to 117.29 at opening bell.Mean while Light, sweet crude fell 68 cents to settle at $102.58 per barrel on the New York Mercantile Exchange. The stock of United Spirits might see some action on the news that the world’s largest liquor company Diageo is interested in picking up stake in United Spirits. There should be a small correction in the banking stocks as they are likely to be out of favor this week. IT is likely to gain after a small correction earlier this week. No doubt the business might slow down for the companies in this sector, but we see a strong growth in the bottom lines of these firms, thanks to the fall in rupee. Meanwhile rupee is living dangerously and had continued its southward journey yesterday breaching the 45 level. We reiterate an immediate target of Rs 45.80/USD for the rupee and a medium target of Rs 48/USD. Look out for Himatsingka Seide, Viceroy Hotels, South India Bank and Tata Teleservices for some medium term gains.Textile related stocks like BSL, RSWM, Indus Filaments and Zenith Birla have shown a break out on the expectations of a turn around in the industry. Indowind Energy and IL&FS Inv Managers are worth keeping on the radar for day traders. Suitable stocks for intraday today: <RELIANCE, ICICIBANK, RELINFRA, HDFC, BHARTIARTL, BHEL, ONGC, BANKINDIA, TATAPOWER, TCS> Market Close Box: BSE Sensex 14662.61 -238.15 NSE Nifty 4400.25 -68.45 USD Rs.45.12 Oil Nymex $102.5 B.Karthick Research Analyst. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
