Pre-Market Report: 24.06.2009
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B. Karthick
Jun 24, 2009, 12:29:50 AM6/24/09
to Kences1
Markets ready for a pull back
Stocks on Dalal Street are likely to pull back and make up the lost
ground on Wednesday's trade. The market has shown great deal of
resilience in Tuesday's trade as the Sensex was able to pull back
convincingly after an early fall. Expect the Sensex to gain more than
one percent or nearly 200 points for the day.
On Wall Street,Stocks ended little changed Tuesday, a day after the
major indexes had their worst day in two months.Investors are looking
for the central bank at its two-day meeting ending Wednesday to
outline its expectations for the economy.The Dow fell 16.10, or 0.2
percent, Tuesday to 8,322.91. The Standard & Poor's 500 index rose
2.06, or 0.2 percent, to 895.10, and the Nasdaq composite index fell
1.27, or 0.1 percent, to 1,764.92.
Metals and Realty which have been the laggards in the past week are
likely to bounce after taking a hard hit in the past 5 trading
sessions. Watch out for a pull back in DLF and Unitech in Realty space
and Sterlite Ind, Hindalco and Tata Steel. We like Tata Steel from a
trading perspective.
Mahindra Satyam is likely to be merged eventually with the parent Tech
Mahindra some time soon. This is bad news for Satyam shareholders as
we believe that the swap ratio will be unfavorable to the current
share holders of the Satyam Computers. It is a good idea to exit the
stock at the current level of Rs 73.
In a separate development the race for Great Offshore Ltd is heating
up as ABG Shipyard announced a counter bid to trump Bharti Shipyard's
offer. We recommend a 'Buy'on Great Off Shore even at the current
level of Rs 413. There is a possible upside of nearly 10 percent left
in the stock.
We are likely to see a small rally in the run up to the budget. There
are some decent stocks in Infra Structure, Auto, Textiles and
Engineering space. We will provide the picks to the subscribers soon.
Also, there are couple of stocks that might take a big hit from the
budget. For day traders, Gateway Distriparks, Punj Lloyd, SUN TV and
Gujarat Alkalies are some of the stocks to keep on the radar.
Stocks on Dalal Street are likely to pull back and make up the lost
ground on Wednesday's trade. The market has shown great deal of
resilience in Tuesday's trade as the Sensex was able to pull back
convincingly after an early fall. Expect the Sensex to gain more than
one percent or nearly 200 points for the day.
On Wall Street,Stocks ended little changed Tuesday, a day after the
major indexes had their worst day in two months.Investors are looking
for the central bank at its two-day meeting ending Wednesday to
outline its expectations for the economy.The Dow fell 16.10, or 0.2
percent, Tuesday to 8,322.91. The Standard & Poor's 500 index rose
2.06, or 0.2 percent, to 895.10, and the Nasdaq composite index fell
1.27, or 0.1 percent, to 1,764.92.
Metals and Realty which have been the laggards in the past week are
likely to bounce after taking a hard hit in the past 5 trading
sessions. Watch out for a pull back in DLF and Unitech in Realty space
and Sterlite Ind, Hindalco and Tata Steel. We like Tata Steel from a
trading perspective.
Mahindra Satyam is likely to be merged eventually with the parent Tech
Mahindra some time soon. This is bad news for Satyam shareholders as
we believe that the swap ratio will be unfavorable to the current
share holders of the Satyam Computers. It is a good idea to exit the
stock at the current level of Rs 73.
In a separate development the race for Great Offshore Ltd is heating
up as ABG Shipyard announced a counter bid to trump Bharti Shipyard's
offer. We recommend a 'Buy'on Great Off Shore even at the current
level of Rs 413. There is a possible upside of nearly 10 percent left
in the stock.
We are likely to see a small rally in the run up to the budget. There
are some decent stocks in Infra Structure, Auto, Textiles and
Engineering space. We will provide the picks to the subscribers soon.
Also, there are couple of stocks that might take a big hit from the
budget. For day traders, Gateway Distriparks, Punj Lloyd, SUN TV and
Gujarat Alkalies are some of the stocks to keep on the radar.
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