Consolidation on cards after two days of hefty gains

Stocks are likely to open higher and consolidate later in the day, as
bulls might take a breather after two consecutive sessions of gigantic
gains. Expect the Sensex to trade between 10,200 to 10,500 for the
day.

U.S. stocks closed marginally lower Monday as automobile manufacturers
reported dismal monthly sales figures and after a report that U.S.
manufacturing activity had dropped in October, with investors cautious
as the race for the White House neared the finish line.The Dow ended
flat with a 5 point loss and Nasdaq ended up by 0.31 percent.

Asian markets opened in green today on opening bell.Japan stocks rose,
rebounding from the Nikkei 225 Stock Average's worst monthly slump on
record, as higher dividend yields and cheaper valuations attracted
investors. The Nikkei climbed 228.63, or 2.7 percent, to 8,805.61 in
early trade.

The focus is likely to shift to old economy stocks, from Realty and
Banking stocks. One should look to pick up stocks in Cement,
Fertilizer and some FMCG stocks as the valuations certainly look
cheaper in this space. Media space looks interesting as well, we like
Sun TV, ENIL and Deccan Chronicle holdings in this space.

There has been a huge up move in the ADAG stocks like Reliance Infra
and RNRL have shown some interesting moves yesterday and investors who
entered at lower levels can book profits at current levels.

The sentiment in the market has turned positive and has reflected in
the form of big gains on the Sensex. Our advice to investors is to
pick stocks in a disciplined fashion and accumulate quality stocks
rather than getting in to the speculative trades. In a nut shell pick
stocks you are comfortable with and think long term as things might
turn worse any moment. Overall a flat to positive day for the indices
with some stock specific action on the cards.

Market Close Box:
BSE Sensex 10337.68 549.62
NSE Nifty 3043.85 158.25
USD Rs.48.96
Oil Nymex $64.05

B.Karthick
Research Analyst.
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