Pre-Market Report: 04.08.2009
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B. Karthick
Aug 4, 2009, 12:32:48 AM8/4/09
to Kences1
The party continues, Sensex to breach 16,000 mark
Stocks on Dalal Street are likely to extend their gains for the second
day in a row after gaining more than 750 points in the past three
sessions. Expect the benchmark index or the Sensex to gain more than
100 points and might breach the 16,000 mark on Tuesday.
Stocks on Wall Street rallied on positive news about the US
manufacturing activity, improved construction spending and better than
expected auto sales from Ford.The Dow rose 114.95, or 1.3 percent, to
9,286.56. The S&P 500 index rose 15.15, or 1.5 percent, to 1,002.63.
Auto sector was a major gainer as investors bid up shares of
automakers on hopes of a rebound in the economy. Realty was another
bright spot after under performing on Monday.Mahindra and Mahindra
gained more than 7 percent and is looking strong at R 918. We expect a
correcting in Automakers like M&M and Tata Motors. So investors should
look to book some profits on any up move in this sector.
We recommend selling Rolta India at the current market price after the
company reported Q4 consolidated net profit was down at Rs 76 crore
versus Rs 133 crore, QoQ. We are concerned about the narrowing margins
and the stock is likely to correct more than 15 percent in the near
term.
The Midcap space is getting heated up now with stocks like Fedders
Lloyd, IG Petro, Empee Distilleries and TIPS Ind hitting circuit
filters. We advise caution to investors in this space and one should
take stock in quality companies.
The stock of Wire and Wireless might spurt after the rights
announcement and one could expect a target of Rs 22 in the short
run.Kemrock Ind, Hanung Toys and Gati Ltd are some of the stocks to
watch closely in Tuesday's trade.
"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"
Key Levels for Today Trade:
NIFTY INDEX Resistance : 4724 / 4740 / 4771 / 4800 / 4835
NIFTY INDEX Support : 4676 / 4655 / 4636 / 4609 / 4583
Mean : 4700
Key Numbers for NIFTY on upside 4740 / 4800
Key numbers for NIFTY on down side 4676 / 4636
BANK NIFTY INDEX Resistance: 7752 / 7828 / 7904 / 8057
BANK NIFTY INDEX Support :7512 / 7443 / 7382
Mean : 7632
Previous Close Box:
BSE Sensex 15924.23 253.92
NSE Nifty 4711.40 74.95
USD Rs.47.87
Oil Nymex $71.43
B.Karthick
Research Analyst
Stocks on Dalal Street are likely to extend their gains for the second
day in a row after gaining more than 750 points in the past three
sessions. Expect the benchmark index or the Sensex to gain more than
100 points and might breach the 16,000 mark on Tuesday.
Stocks on Wall Street rallied on positive news about the US
manufacturing activity, improved construction spending and better than
expected auto sales from Ford.The Dow rose 114.95, or 1.3 percent, to
9,286.56. The S&P 500 index rose 15.15, or 1.5 percent, to 1,002.63.
Auto sector was a major gainer as investors bid up shares of
automakers on hopes of a rebound in the economy. Realty was another
bright spot after under performing on Monday.Mahindra and Mahindra
gained more than 7 percent and is looking strong at R 918. We expect a
correcting in Automakers like M&M and Tata Motors. So investors should
look to book some profits on any up move in this sector.
We recommend selling Rolta India at the current market price after the
company reported Q4 consolidated net profit was down at Rs 76 crore
versus Rs 133 crore, QoQ. We are concerned about the narrowing margins
and the stock is likely to correct more than 15 percent in the near
term.
The Midcap space is getting heated up now with stocks like Fedders
Lloyd, IG Petro, Empee Distilleries and TIPS Ind hitting circuit
filters. We advise caution to investors in this space and one should
take stock in quality companies.
The stock of Wire and Wireless might spurt after the rights
announcement and one could expect a target of Rs 22 in the short
run.Kemrock Ind, Hanung Toys and Gati Ltd are some of the stocks to
watch closely in Tuesday's trade.
"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"
Key Levels for Today Trade:
NIFTY INDEX Resistance : 4724 / 4740 / 4771 / 4800 / 4835
NIFTY INDEX Support : 4676 / 4655 / 4636 / 4609 / 4583
Mean : 4700
Key Numbers for NIFTY on upside 4740 / 4800
Key numbers for NIFTY on down side 4676 / 4636
BANK NIFTY INDEX Resistance: 7752 / 7828 / 7904 / 8057
BANK NIFTY INDEX Support :7512 / 7443 / 7382
Mean : 7632
Previous Close Box:
BSE Sensex 15924.23 253.92
NSE Nifty 4711.40 74.95
USD Rs.47.87
Oil Nymex $71.43
B.Karthick
Research Analyst
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