Pre-Market Report: 25.08.2009
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B. Karthick
Aug 25, 2009, 12:13:52 AM8/25/09
to Kences1
Sensex ripe for correction, time to book profits
Aug 25, 2009
Indian markets are set to open flat to lower in the first hour of
trade. Expect some profit booking to come in today at higher levels.
The benchmark index or the Sensex is likely to correct nearly more
than a percent or 150 points for the day.
On Wall Street investors slowed their hectic buying of stocks Monday,
leaving the major indexes little changed after a four-day advance.The
Dow rose 3.32, or less than 0.1 percent, to 9,509.28, after earlier
rising as much as 82 points. The Standard & Poor's 500 index fell
0.56, or 0.1 percent, to 1,025.57, while the Nasdaq composite index
fell 2.92, or 0.1 percent, to 2,017.98.
Realty stocks were major gainers with more than a 5 percent gain
reflecting the gains in real estate stocks in other Asian
markets.Consumer Goods and Metal stocks were also active, as the bulls
took the market on a ride on hopes of an earlier than expected
recovery.
As mentioned in the last column Oil exploration stocks were on fire as
Crude Oil rallied to a 10 month record high. Alpha Geo, Selan
Exploration and Jindal Drilling were all up more than 15 percent as
the drilling sector is expected to make a come back. We advice
investors to start trimming their holdings in this sectors as we
believe the Crude prices might stabilize at the $ 80 level by the end
of the year and this rally could be used to book profits in these
stocks.
Midcap realty stocks like Brigade Enterprises and Madhucon Projects
flared up on heavy operator activity especially in the former. There
was unusual volume with decent price action in India Bulls Securities
as the stock gained 14.5 percent on a volume of more than 10 million
shares.
We are of the opinion that the market is overheated and has formed an
intermediate top. There is a strong possibility of crash in the coming
days as we thing some of the stocks have run ahead of the
fundamentals. Book profits and stay on the sidelines, if you really
want to stay invested stay in quality blue chips.Volume can determine
Anything -- Stay Cautious.
"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"
Key Levels for Today Trade:
NIFTY INDEX Resistance : 4680 / 4694 / 4711 / 4740 / 4790
NIFTY INDEX Support : 4605 / 4580 / 4564 / 4528 / 4481
Mean : 4642.5
Key Numbers for NIFTY on upside 4680 / 4711
Key numbers for NIFTY on down side 4605 / 4580 / 4528 / 4481
BANK NIFTY INDEX Resistance: ----
BANK NIFTY INDEX Support : ----
Mean : ----
Previous Close Box:
BSE Sensex 15628.75 387.92
NSE Nifty 4642.80 114.00
USD Rs.48.62
Oil Nymex $72.35
Aug 25, 2009
Indian markets are set to open flat to lower in the first hour of
trade. Expect some profit booking to come in today at higher levels.
The benchmark index or the Sensex is likely to correct nearly more
than a percent or 150 points for the day.
On Wall Street investors slowed their hectic buying of stocks Monday,
leaving the major indexes little changed after a four-day advance.The
Dow rose 3.32, or less than 0.1 percent, to 9,509.28, after earlier
rising as much as 82 points. The Standard & Poor's 500 index fell
0.56, or 0.1 percent, to 1,025.57, while the Nasdaq composite index
fell 2.92, or 0.1 percent, to 2,017.98.
Realty stocks were major gainers with more than a 5 percent gain
reflecting the gains in real estate stocks in other Asian
markets.Consumer Goods and Metal stocks were also active, as the bulls
took the market on a ride on hopes of an earlier than expected
recovery.
As mentioned in the last column Oil exploration stocks were on fire as
Crude Oil rallied to a 10 month record high. Alpha Geo, Selan
Exploration and Jindal Drilling were all up more than 15 percent as
the drilling sector is expected to make a come back. We advice
investors to start trimming their holdings in this sectors as we
believe the Crude prices might stabilize at the $ 80 level by the end
of the year and this rally could be used to book profits in these
stocks.
Midcap realty stocks like Brigade Enterprises and Madhucon Projects
flared up on heavy operator activity especially in the former. There
was unusual volume with decent price action in India Bulls Securities
as the stock gained 14.5 percent on a volume of more than 10 million
shares.
We are of the opinion that the market is overheated and has formed an
intermediate top. There is a strong possibility of crash in the coming
days as we thing some of the stocks have run ahead of the
fundamentals. Book profits and stay on the sidelines, if you really
want to stay invested stay in quality blue chips.Volume can determine
Anything -- Stay Cautious.
"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"
Key Levels for Today Trade:
NIFTY INDEX Resistance : 4680 / 4694 / 4711 / 4740 / 4790
NIFTY INDEX Support : 4605 / 4580 / 4564 / 4528 / 4481
Mean : 4642.5
Key Numbers for NIFTY on upside 4680 / 4711
Key numbers for NIFTY on down side 4605 / 4580 / 4528 / 4481
BANK NIFTY INDEX Resistance: ----
BANK NIFTY INDEX Support : ----
Mean : ----
Previous Close Box:
BSE Sensex 15628.75 387.92
NSE Nifty 4642.80 114.00
USD Rs.48.62
Oil Nymex $72.35
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