Markets in a correction mode Stocks in India are likely to trade lower on Wednesday after a bad day on the bourses yesterday. Expect the Sensex to give up 100 points or nearly one percent for the day. We are of the opinion that stocks look attractive at current levels after a decent correction yesterday.
Stocks on Wall Street fell after a private research group said consumer confidence unexpectedly fell in June. the Dow Jones industrials fell 82.38, or 1 percent, to 8,447.00. The blue chips had been down by more than 100.The S&P 500 index fell 7.91, or 0.9 percent, to 919.32, while the Nasdaq composite index fell 9.02, or 0.5 percent, to 1,835.04. Realty and Metal sectors were hard hit yesterday and are likely to remain under pressure for the second day in a row. IT stocks fared better than most of the sectors with the sectoral index closing 0.5 percent below Monday's closing price. Metals stocks might be under additional pressure with Hindalco reporting dismal numbers for the recent quarter.The company reported 78 per cent dip in its consolidated net profit for the year ended March 2009, due to slump in global prices for aluminum. We expect the stock to close at or below Rs 80 from the current market price of Rs 86. We have seen a surprising move in the indices with a correction of nearly 2 percent, when the other Asian indices gained at the same pace on Tuesday. So we expect Indian markets to be resilient on Wednesday. Do not go short in the market, as we have consolidated for the past two days and a nice bounce from here is not ruled out. We advise investors to pick select midcaps which could benefit from the budget for gains in the short term. --~--~---------~--~----~------------~-------~--~----~ 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 -~----------~----~----~----~------~----~------~--~---
