Sensex to move sideways, Midcaps likely to dominate Sep 01, 2009
Stocks on Dalal Street are likely trade in a narrow band after giving up some recent gains on the first trading day of the week. Expect the benchmark index or the Sensex to trade in a band of 150 points or 1 percent as investors turned cautious following a huge run up in the stocks markets so far this year. Stocks fell on Wall Street in light trading on Monday, after a 6.7 percent plunge in China's main stock market sent a wave of selling around the world and added to concerns that stocks have rocketed too high, too fast.The Dow fell 47.92, or 0.5 percent, to 9,496.38. The S&P 500 index slid 8.31, or 0.8 percent, to 1,020.62, while the Nasdaq dropped 19.71, or 1 percent, to 2,009.06. The good news on the economy front is that,the Indian economy has grown by 6.1 per cent during the first quarter of the current fiscal.This is a a tad higher than the 5.8-per cent growth rate recorded during the past two quarters.Mining and Insurance sectors registered growth YOY even in a tough economic environment. Coming to the stock specific activity, looking at the recent developments at Maytas Infra, we believe that the stock has an upside of more than 50 percent from current levels. The Union Government has decided to hand over the reins of management and promoter status of Maytas Infra Ltd to IL&FS, which already holds 14.5 percent in the company. Expect the stock to reach Rs 150 level in no time. Godrej Ind is another stock that is looking explosive at the current level of Rs 190 and we advise investors with risk apetite to try their hand for a target of Rs 250. The company's plans to exit non-core businesses and also the upcoming Godrej Properties IPO might bolster the stock in the coming days. We are of the opinion that largecaps will under perform the rest of the markets, especially midcaps as this space is likely to be on fire in the coming days.Watch out for midcaps like Indo Tech Transformers, KS Oils, Jindal Photofilms and last but on the least, the stock of Satyam Computers looks explosive at current levels after surpassing the Rs 120 mark and one should expect the stock gain another Rs 20 in the next 2 trading sessions. "USE EVERY RISE TO BOOK PROFITS" "ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS" Key Levels for Today Trade: NIFTY INDEX Resistance : 4688 / 4732 / 4754 / 4771 / 4800 NIFTY INDEX Support : 4642 / 4605 / 4580 / 4564 / 4528 Mean : 4665 Key Numbers for NIFTY on upside 4688 / 4754 Key numbers for NIFTY on down side 4642 / 4605 / 4580 BANK NIFTY INDEX Resistance: 7511 / 7591 / 7671 BANK NIFTY INDEX Support : 7375 / 7294 / 7214 / 7106 Mean : 7443 Previous Close Box: BSE Sensex 15666.64 -255.70 NSE Nifty 4662.10 -70.25 USD Rs.48.88 Oil Nymex $69.85 --~--~---------~--~----~------------~-------~--~----~ 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 -~----------~----~----~----~------~----~------~--~---
