Buyers Stampede likely to bolster the Sensex for the second day in a
row

Bulls are back in the market, as we are likely to see a buying
stampede on Dalal Street. We are likely to witness a jump of nearly
600 points or 5 percent in the sensex. The next likely resistance for
the Sensex is 11.980.00.

U.S. stocks sprang higher on Monday for the first day in nine, with
the Dow Jones Industrial Average tallying its biggest daily point jump
on record, after international government actions revived confidence
in the banking sector and credit markets.Dow Jones Industrial Average
gained 936.42 points, or 11.1%, to finish at 9,387.61.The S&P 500 rose
104.10 points, or 11.6%, to 1,003.32, the S&P's largest daily point
jump and fifth-largest daily percentage climb.The Nasdaq Composite
climbed 194.74 points, or 11.8%, to 1,844.25.

Expect a strong opening in the Asian markets capitalizing on the rally
in the US stocks. Metals, IT and Realty stocks are expected to lead
the rally in today's market. The rally is expected to be across the
board as we are likely to see some inflows from the funds that have
been waiting on the sidelines.

Engineering firms like L&T and BHEL might see some strong moves ahead
of the Q2 numbers. Midcaps which have under performed in yesterday's
rally might look to rebound strongly.

We like stocks like Vishal Retail (Rs 138), Core Projects (Rs 58),
Rajesh Exports (Rs 22) at these valuations, as there is a good chance
of a rebound in the short term.

We advice serious caution for the medium term investors in the current
market scenario. This week provides a great opportunity for short term
investors who would like a quick trade as bullishness is likely to
prevail in the short term. So, for investors who are looking from a  6
month perspective or who intend to invest their entire savings or
borrowed capital are strictly advised to stay away. This is a good
market for people who would like to do some quick trades or who would
like to invest from 2 to 3 year horizon.

Market Close Box:
BSE Sensex 11332.23 804.38
NSE Nifty 3490.70 210.75
USD Rs.48.03
Oil Nymex $81.19

B.Karthick
Research Analyst.
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