Pre-Market Report: 17.06.2009
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B. Karthick
Jun 17, 2009, 12:11:37 AM6/17/09
to Kences1
Sensex to breach 15,000, Selling to resume on Dalal Street
Stocks on Dalal Street are likely to correct after a resilient Tuesday
on the street. Bulls are in denial and as they are not willing to give
up even after a 80 percent move up. Expect the Sensex to correct
nearly more than 2 percent 0r 300 points to settle around 14,200
level.
More signs of a weak economy gave investors a reason to sell stocks
for the second consecutive day on Wall Street.The Dow Jones industrial
average fell 107.46, or 1.3 percent, to 8,504.67. The Standard &
Poor's 500 index fell 11.75, or 1.3 percent, to 911.97, while the
Nasdaq composite index fell 20.20, or 1.1 percent, to 1,796.18.
We have seen some decent move in ADAG group companies yesterday with
Reliance Capital and Reliance Infra making decent gains.We still
believe that the market is not a safe place to be in the current
markets. Go short in Realty, Metal and some speculative midcaps.
Unitech looks like a good bet for the shorts, as the company has
announce plans to issue nearly a billion shares diluting the equity.
We believe that the company has a long way to go and might face severe
head winds if the economic crisis deepens.At around Rs 90 level, it
looks over valued considering the effect of dilution on its earnings
power. If by any chance, we see a spike on the news of the offering,
sell this stock to make decent money for a target of Rs 82.
Satyam Computers is one stock one could look for a bullish up move as
the stock has consolidated at Rs 80 level. Traders with some risk
appetite could look in to getting in to this stock for a target of Rs
85. This pick is strictly for traders. Max India (Rs 227) might spike
and might breach the 52 week high of Rs 245 on news of possible sale
according to a leading business daily.
Wire & Wireless, Zee News, GSFC, Zee news are some of the midcaps to
watch ahead of the Q4 numbers. Today might not turn out to be a good
one for the bulls. We are not being a bear by being overly
pessimistic. Just wanted to caution you that there is room for a pull
back here. Long term investors who have a 18-24 month horizon there is
nor reason to panic, if you are holding blue chips.
B.Karthick
Research Analyst.
Stocks on Dalal Street are likely to correct after a resilient Tuesday
on the street. Bulls are in denial and as they are not willing to give
up even after a 80 percent move up. Expect the Sensex to correct
nearly more than 2 percent 0r 300 points to settle around 14,200
level.
More signs of a weak economy gave investors a reason to sell stocks
for the second consecutive day on Wall Street.The Dow Jones industrial
average fell 107.46, or 1.3 percent, to 8,504.67. The Standard &
Poor's 500 index fell 11.75, or 1.3 percent, to 911.97, while the
Nasdaq composite index fell 20.20, or 1.1 percent, to 1,796.18.
We have seen some decent move in ADAG group companies yesterday with
Reliance Capital and Reliance Infra making decent gains.We still
believe that the market is not a safe place to be in the current
markets. Go short in Realty, Metal and some speculative midcaps.
Unitech looks like a good bet for the shorts, as the company has
announce plans to issue nearly a billion shares diluting the equity.
We believe that the company has a long way to go and might face severe
head winds if the economic crisis deepens.At around Rs 90 level, it
looks over valued considering the effect of dilution on its earnings
power. If by any chance, we see a spike on the news of the offering,
sell this stock to make decent money for a target of Rs 82.
Satyam Computers is one stock one could look for a bullish up move as
the stock has consolidated at Rs 80 level. Traders with some risk
appetite could look in to getting in to this stock for a target of Rs
85. This pick is strictly for traders. Max India (Rs 227) might spike
and might breach the 52 week high of Rs 245 on news of possible sale
according to a leading business daily.
Wire & Wireless, Zee News, GSFC, Zee news are some of the midcaps to
watch ahead of the Q4 numbers. Today might not turn out to be a good
one for the bulls. We are not being a bear by being overly
pessimistic. Just wanted to caution you that there is room for a pull
back here. Long term investors who have a 18-24 month horizon there is
nor reason to panic, if you are holding blue chips.
B.Karthick
Research Analyst.
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