Sensex likely to finish in green on the last trading day of the week

Stocks look to bounce back after a decent pull back from lows
yesterday. A late rally in US equities and a over sold market might
prompt nearly a 2 to 3 percent jump in the Sensex.

Japan's stocks rallied gained nearly 2 percent after a 23 percent
decline in the past month made shares cheap and prospects for a
bailout of bond insurers spurred a late rally in New York. Wall Street
turned in another stunning finish Thursday and extended its
unprecedented streak of volatility this time, to the upside as the Dow
Jones industrials ended up 400 points, after falling 380 early in the
session  last hour wave of buying.

Crude oil rebounded above $70 a barrel, halting a 14 percent price
slide over the past three days, as U.S. stocks rose in a late
rally.Crude oil for November delivery rose $2.85, or 4.1 percent, to
$72.70 a barrel on NYMEX.

The government today has announced that all the public sector
undertakings (PSUs) have been directed not to press redemptions from
public sector mutual funds as it could lead to further panic in the
market.

If we take a look at the losers over the past month among the Nifty
fifty stocks shows that majority of the losers are concentrated in
commodity and engineering space. Tata Steel, Hindalco and Sterlite
lost more than 40 percent in less than 20 trading sessions. Media and
pharma are seen as safe bets in the current market. We like Sun TV, HT
Media and Deccan Chronicle as value plays from a long term
perspective.

We might see a strong open may be a 200 to 300 point gain in the open
and thing might consolidate from there through out the day. It is safe
to assume that the market won't close in red. So as always, there is
nothing much for the Short term traders here. Long term investors
though could start buying at the current levels.We predict equities to
give 35 to 40 percent return in the next 20 - 24 months.

B.Karthick
Research Analyst.
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