Stocks set to open lower on selling pressure
Bulls are likely to bow to the selling pressure on Tuesday after a gain of nearly 6 percent in the Sensex. Expect stocks in metal and power sector to give back some gains in today's trade. We might see a correction of nearly 200 points or 2 percent in the Sensex. U.S. stocks finished lower on Monday, sending the Dow Jones Industrial Average back below 9,000, after early enthusiasm over China's economic stimulus faded in favor of ongoing worries about U.S. companies, including General Motors Corp.The Dow finished lower by 0.82 percent or 73 points for the day. Asian markets retreated early Tuesday after a decline on Wall Street. Japan's Nikkei 225 Average dropped 2.7% to 8,834.30 and South Korea's Kospi shed 2.2% to 1,127.66. Goldman Sachs yesterday cut its growth estimate for the year to 6.7 per cent from 9 per cent in the year ending March 2009, as a result of a looming global financial crisis. It further lowered the estimates for the 2009-2010 to 5.8 per cent from 7.0 per cent. The export numbers for October are not good either as India’s exports have shrunk 15 per cent in October. This is the first contraction in nearly 5 years. Auto sector still remains in focus as the bad news continues to flow in. Weakness is likely to persist in the sector for the next few quarters and investors are advised against taking position in this sector. Avoid Tata Motors, Ashok Leyland and M&M,as we might see a slide of another 20 to 25 percent. The timeline for the recovery looks far as the crisis looks worse than expected. So there is no quick money in equities and we need some brave hearts to buy and hold, given the volatility in the markets. A negative opening on cards with a possibility of 2 to 3 percent correction. But there is a strong possibility of a pull back towards the end of the day. Market Close Box: BSE Sensex 10536.16 571.87 NSE Nifty 3148.25 175.25 USD Rs.47.32 Oil Nymex $61.95 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 -~----------~----~----~----~------~----~------~--~---
