Pre-Market Report: 18.06.2009
0 views
Skip to first unread message
B. Karthick
Jun 18, 2009, 12:00:18 AM6/18/09
to Kences1
Bulls might get some breathing room after a massive sell off
Stocks look for a slightly higher open after witnessing a sharp plunge
in yesterday's trade. Better than expected advance tax collection
numbers in the first quarter and some sever correction in the past few
days might give bulls a breathing room. Expect the benchmark index or
the Sensex to trade in a band of nearly 1 percent with some upside
momentum.
Stocks mostly fell Wednesday, on Wall Street. The market was held back
by FedEx's weak profit forecast,downbeat comments about the economy
and a ratings downgrade of 18 banks by S&P gave investors a reason to
sell stocks. The Dow Jones industrial average fell 7.49, or 0.1
percent, to 8,497.18 after moving in and out of positive territory
during the day. The broader S&P 500 index fell 1.26, or 0.1 percent,
to 910.71, and the Nasdaq composite index rose 11.88, or 0.7 percent,
to 1,808.06.
We have seen a deep correction in Realty and Metals sectors and these
sectors likely to be under pressure even in today's trade. Tata Steel
was a major loser among the NSE-50 stocks and there is some more room
for correction in the coming days. Stay away from Realty stocks. We
have recommended investors to do some 'short selling' in Unitech and
this has worked well. The stock made a high of Rs.92 and reached an
intra day low of Rs 82, which coincided with our intra day target.
One sectors that looks healthy even in this chaotic scenario is
healthcare. We like Fortis Healthcare on a pull back here as the might
be reaping the benefits of growing hospital industry and also the
consolidation. Wockhardt Hospitals is again in news, as the company
sold its German unit and is also looking sell stake in its hospital
business. This might bode well for Wockhardt in the long run.
We like the generic drug market, as this space is likely to attract
great deal of interest in the coming days. Cipla Ltd, Reddy's and
Aurobindo stand out in this space along with Sun Pharma. Investors who
would like to play safe can look in to this sector as these stocks
have been defensive plays in volatile market.ABG Shipyard, On Mobile
Ltd, Berger Paints and GSS America might be the stocks in the midcap
space to closely watch ahead of some key events.
B.Karthick
Research Analyst
Stocks look for a slightly higher open after witnessing a sharp plunge
in yesterday's trade. Better than expected advance tax collection
numbers in the first quarter and some sever correction in the past few
days might give bulls a breathing room. Expect the benchmark index or
the Sensex to trade in a band of nearly 1 percent with some upside
momentum.
Stocks mostly fell Wednesday, on Wall Street. The market was held back
by FedEx's weak profit forecast,downbeat comments about the economy
and a ratings downgrade of 18 banks by S&P gave investors a reason to
sell stocks. The Dow Jones industrial average fell 7.49, or 0.1
percent, to 8,497.18 after moving in and out of positive territory
during the day. The broader S&P 500 index fell 1.26, or 0.1 percent,
to 910.71, and the Nasdaq composite index rose 11.88, or 0.7 percent,
to 1,808.06.
We have seen a deep correction in Realty and Metals sectors and these
sectors likely to be under pressure even in today's trade. Tata Steel
was a major loser among the NSE-50 stocks and there is some more room
for correction in the coming days. Stay away from Realty stocks. We
have recommended investors to do some 'short selling' in Unitech and
this has worked well. The stock made a high of Rs.92 and reached an
intra day low of Rs 82, which coincided with our intra day target.
One sectors that looks healthy even in this chaotic scenario is
healthcare. We like Fortis Healthcare on a pull back here as the might
be reaping the benefits of growing hospital industry and also the
consolidation. Wockhardt Hospitals is again in news, as the company
sold its German unit and is also looking sell stake in its hospital
business. This might bode well for Wockhardt in the long run.
We like the generic drug market, as this space is likely to attract
great deal of interest in the coming days. Cipla Ltd, Reddy's and
Aurobindo stand out in this space along with Sun Pharma. Investors who
would like to play safe can look in to this sector as these stocks
have been defensive plays in volatile market.ABG Shipyard, On Mobile
Ltd, Berger Paints and GSS America might be the stocks in the midcap
space to closely watch ahead of some key events.
B.Karthick
Research Analyst
Reply all
Reply to author
Forward
0 new messages