Markets are likely to show a sigh of relief as the major economies across the globe are likely to unveil a rescue plan to avoid the melt down. Expect the Sensex to recoup the ground lost on Friday.So a 500 to 800 point gain is on the cards as the momentum is likely to shift in favor of the bulls.
Asian stocks advanced after the worst week on record and U.S. index futures gained as Australia, Europe and the U.S. stepped up measures to bolster the global financial system.The S&P and Dow futures advanced more than 4 percent on the news. Crude oil rose from a 13-month low in New York on speculation action by European leaders to prevent the region's major lenders from collapsing. Crude oil for November delivery rose as much as $3.37, or 4.3 percent, to $81.07 a barrel in after-hours electronic trading on the New York Mercantile Exchange. Banks are likely to get a boost with ICICI Bank taking the lead. The stock is likely to gain and might easily surpass the Rs 400 level from the current market price of Rs 364. The bank got a boost as the global credit rating agencies like S&P and Moody's reiterated a strong rating to the securities held by the bank. We might see some short covering in this counter. Realty stocks might get a shot in the arm as selling has been overdone in most of the counters . The coming week will see some heavy weights reporting their earnings. L&T and HDFC bank will be on the deck to report their Q2 earnings and the former is expected to deliver stellar results as the order book of L&T has swollen more than 6 times in the past quarter. Stocks are expected to shoot up in early trade and are expected to be volatile through out the day. It will be a good idea to stay away from making a trade in the early hours. We believe this is a relief rally and things will not be rosy all of a sudden in the next few days, as it will take a while for the wounds to heal. The only trade we suggest for long term investors is to Buy ICICI Bank at any price below Rs 420 as a long term investment. Ravichandran K. www.kences1.blogspot.com --~--~---------~--~----~------------~-------~--~----~ 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 -~----------~----~----~----~------~----~------~--~---
