Pre-Market Report: 02.09.2009
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B. Karthick
Sep 2, 2009, 12:26:46 AM9/2/09
to Kences1
Markets to correct, Midcaps might come under pressure
Sep 02, 2009
Stocks on Dalal Street are likely to correct for the second day in a
row following negative global cues and some profit booking. Expect the
benchmark index or the Sensex to correct by nearly 2 percent or more
than 300 points to test the 15,250 level.
On Wall Street September lived up to its reputation as being the worst
month for stocks as elevated anxiety pushed the three major indexes
down 2 percent for the day and drove the S&P 500 below the
psychologically important threshold of 1,000.The Dow Jones industrial
average tumbled 185.68 points, or 1.96 percent, to close at
9,310.60.The Nasdaq Composite Index slid 40.17 points, or 2.00
percent, to 1,968.89.
Midcaps might be under tremendous pressure after a humongous run for
the past one month.Investors might shun the companies with corporate
governance issues following the news of fraudulent transactions by
Austral Coke.Market watchdog Securities and Exchange Board of India
today barred metallurgical coke producer Austral Coke from raising any
fresh equity after the income tax department unearthed an alleged more
than Rs 1,000 crore fraud in the company's transactions.
We have been advising investors to stay on sidelines and today might
be the beginning of a a short term correction which might take the
index to 14,800 level. We do not see a big percentage loss on the
Sensex in the near term, but Midcaps might correct anywhere between 20
to 40 percent following the speculative run they have witnessed.
Book profits in all the midcaps as we believe that largecaps are bound
to make a comeback in case of a pull back, as we think it is all over
for the second and third rung counters. We advice booking profits in
Realty and second Rung IT stocks as the party seems to be over.
Overall, a bad day for the Sensex as Bears will look to take advantage
of the opportunity.
"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"
Previous Close Box:
BSE Sensex 15551.19 -115.45
NSE Nifty 4625.35 -36.75
USD Rs.49.10
Oil Nymex $68.17
Sep 02, 2009
Stocks on Dalal Street are likely to correct for the second day in a
row following negative global cues and some profit booking. Expect the
benchmark index or the Sensex to correct by nearly 2 percent or more
than 300 points to test the 15,250 level.
On Wall Street September lived up to its reputation as being the worst
month for stocks as elevated anxiety pushed the three major indexes
down 2 percent for the day and drove the S&P 500 below the
psychologically important threshold of 1,000.The Dow Jones industrial
average tumbled 185.68 points, or 1.96 percent, to close at
9,310.60.The Nasdaq Composite Index slid 40.17 points, or 2.00
percent, to 1,968.89.
Midcaps might be under tremendous pressure after a humongous run for
the past one month.Investors might shun the companies with corporate
governance issues following the news of fraudulent transactions by
Austral Coke.Market watchdog Securities and Exchange Board of India
today barred metallurgical coke producer Austral Coke from raising any
fresh equity after the income tax department unearthed an alleged more
than Rs 1,000 crore fraud in the company's transactions.
We have been advising investors to stay on sidelines and today might
be the beginning of a a short term correction which might take the
index to 14,800 level. We do not see a big percentage loss on the
Sensex in the near term, but Midcaps might correct anywhere between 20
to 40 percent following the speculative run they have witnessed.
Book profits in all the midcaps as we believe that largecaps are bound
to make a comeback in case of a pull back, as we think it is all over
for the second and third rung counters. We advice booking profits in
Realty and second Rung IT stocks as the party seems to be over.
Overall, a bad day for the Sensex as Bears will look to take advantage
of the opportunity.
"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"
Previous Close Box:
BSE Sensex 15551.19 -115.45
NSE Nifty 4625.35 -36.75
USD Rs.49.10
Oil Nymex $68.17
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