Pre-Market Report: 21.08.2009
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B. Karthick
Aug 21, 2009, 12:28:49 AM8/21/09
to Kences1
Stocks to finish the week with gains
Aug 21, 2009
Bulls are likely to dominate on the final day of the week as all
inidcators are pointing towards a higher opening. More buying should
come in to equities on the back of positive global markets and ample
liquidity. Expect the benchmark index or the Sensex to gain nearly a
percent or nearly 100 points for the day.
Stocks on Wall Street maintained their winning streak as more signs
that the economy is creeping toward recovery encouraged investors to
move further into equities.The Dow Jones industrials rose 70.89, or
0.8 percent, to 9,350.05. The Standard & Poor's 500 index rose 10.91,
or 1.1 percent, to 1,007.37, while the Nasdaq composite index gained
19.98, or 1.0 percent, to 1,989.22.
Gains on Dalal Street were spurred by sharp gains in Auto stocks as
M&M, Maruti and Hero Honda Ltd. Banking and power sectors also
participated in the rally. The listing of Adani Power disappointed
most of the investors who were hoping for a higher listing price. We
were expecting a price of Rs 130 and were caught on the wrong footing.
There should be some selling pressure in this stock, as disappointed
allottees might sell their holdings to meet their margin calls and
some investors might diversify funds to other scrips.
As mentioned in our previous columns, we are seeing new scrips on the
top of the gainers list every day. There was big move in Purvankara
projects in huge volumes and the stock was locked in circuit. Other
power related stocks like Indo Tech Transformers, KSK Energy and
Voltamp Transformers spurted on high investor demand. There seems to
be no stopping for second rung IT stocks. Today was the turn of 3I
Infotech and Cranes Software have seen unusual volume action. Cranes
Soft is our speculative pick for risky traders.
Watch out speculative life sciences stocks like Venus Remedies, Gufic
Bio Sciences, Granules India in the coming days. Overall a positive
day in the offing for the markets. We do believe that the markets will
be positive for a day or two. We are not bullish about the markets
from these levels as fundamentals do not warrant a sharp rise in the
markets. However, there is lot of money on the side lines and
tremendous liquidity is the driving force behind the current bull run.
But Voulme is the key for bull.
"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"
Key Levels for Today Trade:
NIFTY INDEX Resistance : 4459 / 4481 / 4502 / 4524 / 4585
NIFTY INDEX Support : 4437 / 4398 / 4374 / 4356 / 4340 / 4313 /
4291
Mean : 4448
Key Numbers for NIFTY on upside 4459 / 4502
Key numbers for NIFTY on down side 4437 / 4374 / 4291
BANK NIFTY INDEX Resistance: 7322 / 7383 / 7506 / 7567
BANK NIFTY INDEX Support : 7129 / 7063 / 6998
Mean : 7225.5
Previous Close Box:
BSE Sensex 15012.32 202.681
NSE Nifty 4453.45 59.35
USD Rs.48.73
Oil Nymex $72.54
Aug 21, 2009
Bulls are likely to dominate on the final day of the week as all
inidcators are pointing towards a higher opening. More buying should
come in to equities on the back of positive global markets and ample
liquidity. Expect the benchmark index or the Sensex to gain nearly a
percent or nearly 100 points for the day.
Stocks on Wall Street maintained their winning streak as more signs
that the economy is creeping toward recovery encouraged investors to
move further into equities.The Dow Jones industrials rose 70.89, or
0.8 percent, to 9,350.05. The Standard & Poor's 500 index rose 10.91,
or 1.1 percent, to 1,007.37, while the Nasdaq composite index gained
19.98, or 1.0 percent, to 1,989.22.
Gains on Dalal Street were spurred by sharp gains in Auto stocks as
M&M, Maruti and Hero Honda Ltd. Banking and power sectors also
participated in the rally. The listing of Adani Power disappointed
most of the investors who were hoping for a higher listing price. We
were expecting a price of Rs 130 and were caught on the wrong footing.
There should be some selling pressure in this stock, as disappointed
allottees might sell their holdings to meet their margin calls and
some investors might diversify funds to other scrips.
As mentioned in our previous columns, we are seeing new scrips on the
top of the gainers list every day. There was big move in Purvankara
projects in huge volumes and the stock was locked in circuit. Other
power related stocks like Indo Tech Transformers, KSK Energy and
Voltamp Transformers spurted on high investor demand. There seems to
be no stopping for second rung IT stocks. Today was the turn of 3I
Infotech and Cranes Software have seen unusual volume action. Cranes
Soft is our speculative pick for risky traders.
Watch out speculative life sciences stocks like Venus Remedies, Gufic
Bio Sciences, Granules India in the coming days. Overall a positive
day in the offing for the markets. We do believe that the markets will
be positive for a day or two. We are not bullish about the markets
from these levels as fundamentals do not warrant a sharp rise in the
markets. However, there is lot of money on the side lines and
tremendous liquidity is the driving force behind the current bull run.
But Voulme is the key for bull.
"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"
Key Levels for Today Trade:
NIFTY INDEX Resistance : 4459 / 4481 / 4502 / 4524 / 4585
NIFTY INDEX Support : 4437 / 4398 / 4374 / 4356 / 4340 / 4313 /
4291
Mean : 4448
Key Numbers for NIFTY on upside 4459 / 4502
Key numbers for NIFTY on down side 4437 / 4374 / 4291
BANK NIFTY INDEX Resistance: 7322 / 7383 / 7506 / 7567
BANK NIFTY INDEX Support : 7129 / 7063 / 6998
Mean : 7225.5
Previous Close Box:
BSE Sensex 15012.32 202.681
NSE Nifty 4453.45 59.35
USD Rs.48.73
Oil Nymex $72.54
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