Market view & Metal sector View
Prabhakar A.K
Nifty (6253) - Nifty Gap-down(6311-6304) near the highest level makes it difficult next few days and if Nifty doesn’t close the gap then very important support 6210-6225 can be breached and lower level of 6080 become a possible support. Today Nifty if holds 6225 then rally till 6290 becomes possible and if the Gap closes then rally can strength in days to come.
Mid-Cap & Small-cap outperform:
Stocks which has been correcting since 2010 November has seen sudden outperformance with PSUBANK, Realty & Infrastructure leading from front and INDIANBANK has rallied 33% in 4trading days, while IRB +21%, ANDHRABANK+16%, DENABANK+16%, JUBLIFOOD+14%, BANKINDIA+13%, SYNDIBANK+12% gainer in month of November with just 3days of trading.
News that impact;
Cognizant posts 15% rise in Q3 profit raises full-year forecast--- This normally has positive impact on IT Stocks and TECHMAH Results on 7th November should see some action.
ABB, BHEL, THERMAX & VOLTAS Results today Capital goods stocks would be in focus along with Power stocks.
Metal Looks attractive
Market always sees sector rotation we have seen FMCG & Pharma seeing more sideways to negative in last 3months while Metal & Mining outperforming in last 4months with BSEMETAL 44% gains from lowest level made on 6th August2013 while TATASTEEL gained 70%, JSWSTEEL+69%, SAIL+64%, SSLT+61%, NMDC+52% outperforming the Metal Index during the same period. While this outperformance is likely to continue and any good correction is chance to buy in TATASTEEL, NMDC & HINDALCO.
HINDALCO Make or Break—HINDALCO Rs.117, has recovered from Rs.83made on 7th August which is lowest in 4years and the rally in last 4months has been month on month basis gains which was last seen when recovery happened in March 2009. Stock has made a W-Shape consolidation and now stock above Rs.119 on closing basis could lead to Rs.135 & 147 by end December.
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A.K.Prabhakar