India Stocks Outlook: To take cues Mon from overseas markets

[K.Karthik Raja]

India Stocks Outlook: To take cues Mon from overseas markets

Key domestic share indices are likely to take cues from overseas
markets on Monday.However, the bias is seen positive as the indices
nearing important technical levels.
Bombay Stock Exchanges(Sensex)ended at 18115.25, up 348.62 or 2.0%
from Thursday. National Stock Exchange's 50-share Nifty closed at
5302.90, up 100.90 points or 1.9%.
"The momentum should continue... Nifty traded above 200-day moving
average for a second straight session and Sensex also closed above
18000, which is a little positive sign.
There has also been a slight improvement in volume yesterday and
even foreign funds were seen buying.
Nifty is likely to test the level of 5399 on Monday, sustaining
above which it can touch 5545.
We expect value buying to continue in frontline stocks, especially
in those bearing the Reliance tag. large-caps are positive on Larsen
&
Toubro,BHEL, Tata Steel, and State Bank of India.
We may also see a rebound in mid-cap and small-cap shares as they
saw some buying yesterday. Many of them have retraced significantly
from their highs and are attractive at current valuations.
We expects Sensex to face "stiff" resistance at 18300, the
breaching of this level could lead to a rally up to 19000.
Fertiliser shares may see some more upside on hopes of sops from
the government in the upcoming Union Budget.
However,trade would remain volatile with bouts of profit- booking
if
there is any negative development overseas.