Pre-Market Report: 27.08.2009
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B. Karthick
Aug 27, 2009, 12:18:34 AM8/27/09
to Kences1
Bulls getting tired, Bears might get fired up
Stocks Dalal Street might trade in a narrow band after managing to
gain nearly 0.5 percent on Wednesday.The bulls are finding a lot of
resistance at the 15,800 level and the going will get tougher from
here as the stocks look tired after a huge run up this quarter. We see
the the Sensex settling down at the current levels with midcaps being
the only glimmer of hope.
On Wall Street, after rocking between gains and losses Wednesday, the
Dow Jones industrials managed to rise for a seventh straight The Dow
rose 4.23, or 0.04 percent, to 9,543.52.The Standard & Poor's 500
index rose 0.12, or 0.01 percent, to 1,028.12, while the Nasdaq
composite index rose 0.20, or 0.01 percent, to 2,024.43.
IT stocks, after under performing on Tuesday came back with vengeance
and stood as the best performer for the day. The sectoral index gained
more than 3 percent for the day. The news that TCS, WIPRO and Infosys
bagged a multi-million dollar contract from global major British
Petroleum brought more buyers in to the sector.
Majority of the action was in the midcap space as the things are
getting very hot in this space. We expect the euphoria to continue and
even extend in to the third rung stocks. Nearly 70 percent of the
stocks in the 'B' group ended up with gains reflecting the Sentiment.
Suven Pharma was locked in circuit gaining more than 10 percent
continuing its run, as mentioned by us on Tuesday's column.We have
seen a new set of gainers yesterday, Granules India was locked in 20
percent circuit on news of preferential allotment to its promoters.
Media stocks started to catch up with UTV and IBN 18 managing to score
double digit gains. We like the stock of SREI Infra after a decent
action in yesterday's market. The stock gained 11.5 percent with
nearly 4 million shares traded.
We stick to our stance that the market will correct in the near term
and the fact that the so called penny stocks are seeing some life
confirms our prediction. We advice investors to stay on the sidelines
as there is a strong chance that you will get a better entry level,
while traders and try their luck in speculative midcaps.
"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"
Key Levels for Today Trade:
NIFTY INDEX Resistance :4694 / 4711 / 4734 / 4777 / 4830
NIFTY INDEX Support :4659 / 4642 / 4605 / 4580 / 4564 / 4528
Mean : 4676.5
Key Numbers for NIFTY on upside 4694 / 4734
Key numbers for NIFTY on down side 4659 / 4605 / 4580
BANK NIFTY INDEX Resistance: 7501 / 7585 / 7668 / 7745
BANK NIFTY INDEX Support : 7396 / 7375 / 7291 / 7208
Mean : 7448.5
Previous Close Box:
BSE Sensex 15769.85 81.38
NSE Nifty 4680.85 21.50
USD Rs.48.94
Oil Nymex $71.43
Stocks Dalal Street might trade in a narrow band after managing to
gain nearly 0.5 percent on Wednesday.The bulls are finding a lot of
resistance at the 15,800 level and the going will get tougher from
here as the stocks look tired after a huge run up this quarter. We see
the the Sensex settling down at the current levels with midcaps being
the only glimmer of hope.
On Wall Street, after rocking between gains and losses Wednesday, the
Dow Jones industrials managed to rise for a seventh straight The Dow
rose 4.23, or 0.04 percent, to 9,543.52.The Standard & Poor's 500
index rose 0.12, or 0.01 percent, to 1,028.12, while the Nasdaq
composite index rose 0.20, or 0.01 percent, to 2,024.43.
IT stocks, after under performing on Tuesday came back with vengeance
and stood as the best performer for the day. The sectoral index gained
more than 3 percent for the day. The news that TCS, WIPRO and Infosys
bagged a multi-million dollar contract from global major British
Petroleum brought more buyers in to the sector.
Majority of the action was in the midcap space as the things are
getting very hot in this space. We expect the euphoria to continue and
even extend in to the third rung stocks. Nearly 70 percent of the
stocks in the 'B' group ended up with gains reflecting the Sentiment.
Suven Pharma was locked in circuit gaining more than 10 percent
continuing its run, as mentioned by us on Tuesday's column.We have
seen a new set of gainers yesterday, Granules India was locked in 20
percent circuit on news of preferential allotment to its promoters.
Media stocks started to catch up with UTV and IBN 18 managing to score
double digit gains. We like the stock of SREI Infra after a decent
action in yesterday's market. The stock gained 11.5 percent with
nearly 4 million shares traded.
We stick to our stance that the market will correct in the near term
and the fact that the so called penny stocks are seeing some life
confirms our prediction. We advice investors to stay on the sidelines
as there is a strong chance that you will get a better entry level,
while traders and try their luck in speculative midcaps.
"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"
Key Levels for Today Trade:
NIFTY INDEX Resistance :4694 / 4711 / 4734 / 4777 / 4830
NIFTY INDEX Support :4659 / 4642 / 4605 / 4580 / 4564 / 4528
Mean : 4676.5
Key Numbers for NIFTY on upside 4694 / 4734
Key numbers for NIFTY on down side 4659 / 4605 / 4580
BANK NIFTY INDEX Resistance: 7501 / 7585 / 7668 / 7745
BANK NIFTY INDEX Support : 7396 / 7375 / 7291 / 7208
Mean : 7448.5
Previous Close Box:
BSE Sensex 15769.85 81.38
NSE Nifty 4680.85 21.50
USD Rs.48.94
Oil Nymex $71.43
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