Pre-Market Report: 01.09.2009
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B. Karthick
Sep 1, 2009, 12:24:21 AM9/1/09
to Kences1
Sensex to move sideways, Midcaps likely to dominate
Sep 01, 2009
Stocks on Dalal Street are likely trade in a narrow band after giving
up some recent gains on the first trading day of the week. Expect the
benchmark index or the Sensex to trade in a band of 150 points or 1
percent as investors turned cautious following a huge run up in the
stocks markets so far this year.
Stocks fell on Wall Street in light trading on Monday, after a 6.7
percent plunge in China's main stock market sent a wave of selling
around the world and added to concerns that stocks have rocketed too
high, too fast.The Dow fell 47.92, or 0.5 percent, to 9,496.38. The
S&P 500 index slid 8.31, or 0.8 percent, to 1,020.62, while the Nasdaq
dropped 19.71, or 1 percent, to 2,009.06.
The good news on the economy front is that,the Indian economy has
grown by 6.1 per cent during the first quarter of the current
fiscal.This is a a tad higher than the 5.8-per cent growth rate
recorded during the past two quarters.Mining and Insurance sectors
registered growth YOY even in a tough economic environment.
Coming to the stock specific activity, looking at the recent
developments at Maytas Infra, we believe that the stock has an upside
of more than 50 percent from current levels. The Union Government has
decided to hand over the reins of management and promoter status of
Maytas Infra Ltd to IL&FS, which already holds 14.5 percent in the
company. Expect the stock to reach Rs 150 level in no time.
Godrej Ind is another stock that is looking explosive at the current
level of Rs 190 and we advise investors with risk apetite to try their
hand for a target of Rs 250. The company's plans to exit non-core
businesses and also the upcoming Godrej Properties IPO might bolster
the stock in the coming days.
We are of the opinion that largecaps will under perform the rest of
the markets, especially midcaps as this space is likely to be on fire
in the coming days.Watch out for midcaps like Indo Tech Transformers,
KS Oils, Jindal Photofilms and last but on the least, the stock of
Satyam Computers looks explosive at current levels after surpassing
the Rs 120 mark and one should expect the stock gain another Rs 20 in
the next 2 trading sessions.
"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"
Key Levels for Today Trade:
NIFTY INDEX Resistance : 4688 / 4732 / 4754 / 4771 / 4800
NIFTY INDEX Support : 4642 / 4605 / 4580 / 4564 / 4528
Mean : 4665
Key Numbers for NIFTY on upside 4688 / 4754
Key numbers for NIFTY on down side 4642 / 4605 / 4580
BANK NIFTY INDEX Resistance: 7511 / 7591 / 7671
BANK NIFTY INDEX Support : 7375 / 7294 / 7214 / 7106
Mean : 7443
Previous Close Box:
BSE Sensex 15666.64 -255.70
NSE Nifty 4662.10 -70.25
USD Rs.48.88
Oil Nymex $69.85
Sep 01, 2009
Stocks on Dalal Street are likely trade in a narrow band after giving
up some recent gains on the first trading day of the week. Expect the
benchmark index or the Sensex to trade in a band of 150 points or 1
percent as investors turned cautious following a huge run up in the
stocks markets so far this year.
Stocks fell on Wall Street in light trading on Monday, after a 6.7
percent plunge in China's main stock market sent a wave of selling
around the world and added to concerns that stocks have rocketed too
high, too fast.The Dow fell 47.92, or 0.5 percent, to 9,496.38. The
S&P 500 index slid 8.31, or 0.8 percent, to 1,020.62, while the Nasdaq
dropped 19.71, or 1 percent, to 2,009.06.
The good news on the economy front is that,the Indian economy has
grown by 6.1 per cent during the first quarter of the current
fiscal.This is a a tad higher than the 5.8-per cent growth rate
recorded during the past two quarters.Mining and Insurance sectors
registered growth YOY even in a tough economic environment.
Coming to the stock specific activity, looking at the recent
developments at Maytas Infra, we believe that the stock has an upside
of more than 50 percent from current levels. The Union Government has
decided to hand over the reins of management and promoter status of
Maytas Infra Ltd to IL&FS, which already holds 14.5 percent in the
company. Expect the stock to reach Rs 150 level in no time.
Godrej Ind is another stock that is looking explosive at the current
level of Rs 190 and we advise investors with risk apetite to try their
hand for a target of Rs 250. The company's plans to exit non-core
businesses and also the upcoming Godrej Properties IPO might bolster
the stock in the coming days.
We are of the opinion that largecaps will under perform the rest of
the markets, especially midcaps as this space is likely to be on fire
in the coming days.Watch out for midcaps like Indo Tech Transformers,
KS Oils, Jindal Photofilms and last but on the least, the stock of
Satyam Computers looks explosive at current levels after surpassing
the Rs 120 mark and one should expect the stock gain another Rs 20 in
the next 2 trading sessions.
"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"
Key Levels for Today Trade:
NIFTY INDEX Resistance : 4688 / 4732 / 4754 / 4771 / 4800
NIFTY INDEX Support : 4642 / 4605 / 4580 / 4564 / 4528
Mean : 4665
Key Numbers for NIFTY on upside 4688 / 4754
Key numbers for NIFTY on down side 4642 / 4605 / 4580
BANK NIFTY INDEX Resistance: 7511 / 7591 / 7671
BANK NIFTY INDEX Support : 7375 / 7294 / 7214 / 7106
Mean : 7443
Previous Close Box:
BSE Sensex 15666.64 -255.70
NSE Nifty 4662.10 -70.25
USD Rs.48.88
Oil Nymex $69.85
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