markettrend766
06-10-2008, 06:50 AM
Volumes were low in the derivatives segment. The Nifty October futures were seen trading at a premium of 33 points to spot on account of sell off in cash segment and witnessed good short selling above 3,900. Option activity in Nifty indicates traders ‘confidence’ of Nifty touching 3,650 in near term.
Avoid excessive shorting and book profits between 3,650-3,700 band. Sharp re-covery from the middle of the week is not ruled out. Short build up was seen in metals, oil and gas space.
With commodities heading for biggest weekly decline, metal stocks melted on selling pressure. Value buyers can wait and accumulate Tata Steel, JSW Steel, Hindalco, Nalco and SAIL.
Reports of hedge fund sa-les and concerns over falling refining margins triggered sale in Reliance Industries. Further weakness expected in near term. Ahead of Q2 results, rebound in IT stocks is not ruled out. Industry watchers expect some leading IT firms to announce buy back offers to shore up market valuations. Buy Infosys, HCL Tech and Satyam for short term.
Hunt for value in battered infrastructure and realty counters can be done selectively. Short term bump up likely in Lanco Infra, GMR Infra, HCC and GVK Pow-er. Contrarian buying advi-sed in oil marketing firms, FMCG and hotel counters. Looking technically strong are Hero Honda, TVS Mot-ors, Dabur, Hind Unilever, Lupin, Sun Pharma, RECL, BPCL, M&M, Power grid and NTPC.
Avoid excessive shorting and book profits between 3,650-3,700 band. Sharp re-covery from the middle of the week is not ruled out. Short build up was seen in metals, oil and gas space.
With commodities heading for biggest weekly decline, metal stocks melted on selling pressure. Value buyers can wait and accumulate Tata Steel, JSW Steel, Hindalco, Nalco and SAIL.
Reports of hedge fund sa-les and concerns over falling refining margins triggered sale in Reliance Industries. Further weakness expected in near term. Ahead of Q2 results, rebound in IT stocks is not ruled out. Industry watchers expect some leading IT firms to announce buy back offers to shore up market valuations. Buy Infosys, HCL Tech and Satyam for short term.
Hunt for value in battered infrastructure and realty counters can be done selectively. Short term bump up likely in Lanco Infra, GMR Infra, HCC and GVK Pow-er. Contrarian buying advi-sed in oil marketing firms, FMCG and hotel counters. Looking technically strong are Hero Honda, TVS Mot-ors, Dabur, Hind Unilever, Lupin, Sun Pharma, RECL, BPCL, M&M, Power grid and NTPC.