Sensex ripe for correction, time to book profits Aug 25, 2009 Indian markets are set to open flat to lower in the first hour of trade. Expect some profit booking to come in today at higher levels. The benchmark index or the Sensex is likely to correct nearly more than a percent or 150 points for the day.
On Wall Street investors slowed their hectic buying of stocks Monday, leaving the major indexes little changed after a four-day advance.The Dow rose 3.32, or less than 0.1 percent, to 9,509.28, after earlier rising as much as 82 points. The Standard & Poor's 500 index fell 0.56, or 0.1 percent, to 1,025.57, while the Nasdaq composite index fell 2.92, or 0.1 percent, to 2,017.98. Realty stocks were major gainers with more than a 5 percent gain reflecting the gains in real estate stocks in other Asian markets.Consumer Goods and Metal stocks were also active, as the bulls took the market on a ride on hopes of an earlier than expected recovery. As mentioned in the last column Oil exploration stocks were on fire as Crude Oil rallied to a 10 month record high. Alpha Geo, Selan Exploration and Jindal Drilling were all up more than 15 percent as the drilling sector is expected to make a come back. We advice investors to start trimming their holdings in this sectors as we believe the Crude prices might stabilize at the $ 80 level by the end of the year and this rally could be used to book profits in these stocks. Midcap realty stocks like Brigade Enterprises and Madhucon Projects flared up on heavy operator activity especially in the former. There was unusual volume with decent price action in India Bulls Securities as the stock gained 14.5 percent on a volume of more than 10 million shares. We are of the opinion that the market is overheated and has formed an intermediate top. There is a strong possibility of crash in the coming days as we thing some of the stocks have run ahead of the fundamentals. Book profits and stay on the sidelines, if you really want to stay invested stay in quality blue chips.Volume can determine Anything -- Stay Cautious. "USE EVERY RISE TO BOOK PROFITS" "ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS" Key Levels for Today Trade: NIFTY INDEX Resistance : 4680 / 4694 / 4711 / 4740 / 4790 NIFTY INDEX Support : 4605 / 4580 / 4564 / 4528 / 4481 Mean : 4642.5 Key Numbers for NIFTY on upside 4680 / 4711 Key numbers for NIFTY on down side 4605 / 4580 / 4528 / 4481 BANK NIFTY INDEX Resistance: ---- BANK NIFTY INDEX Support : ---- Mean : ---- Previous Close Box: BSE Sensex 15628.75 387.92 NSE Nifty 4642.80 114.00 USD Rs.48.62 Oil Nymex $72.35 --~--~---------~--~----~------------~-------~--~----~ 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 -~----------~----~----~----~------~----~------~--~---
