Sensex to open higher after a horrific week
================================
Dalal Street is poised to open flat with a positive bias after a
horrific past week in Mumbai. The Sensex will likely trade in a
narrow band with a 1 to 1.5 percent gain on the cards.
Asian stocks are looking weak inspite of the news that the Bank of
Japan is expected to hold an emergency policy meeting this week.The
bank will discuss creating a special lending program for the first
time in 10 years as Japanese companies face difficulties procuring
capital and banks become more cautious about lending.
The GDP numbers for the quarter ending Sept came up better than
expectations, eventhough they are lower than the previous quarters.
The economy expanded at a 7.6 percent for the quarter ending Sept 30,
2008 which is the lowest since 2004.
IT and defense stocks are likely to be the leaders in the current
upmove and the hotel and other tourism related stocks are likely to
take the hit and continue the downtrend we have seen on Friday.
Banking might get some respite as the markets are expecting another
round of rate cuts from the central Bank.
Sun Pharma (Rs 1080.00) is likely to be under pressure as the company
has lost out on a $3-billion revenue potential from the US market
after a rival beat it to gain the US regulator’s approval to sell the
world’s best-selling anti-depressant.
Watch out for a bounce in energy firms like Suzlon, KSK Energy and GVK
Power. GTL infra has shown a break out on the charts with huge volumes
and might be headed for a target of Rs 55 soon. Other stock that is
looking great technically is Educomp Solutions which might be headed
for the Rs 2500 level this week, thanks to some short covering as this
stock was heavily shorted in the past couple of weeks
Market Close Box
BSE Sensex 9092.72 0.00
NSE Nifty 2755.10 2.85
USD Rs.49.84
Oil Nymex $54.43
N.Sukumar
Research Analyst
www.kences1.blogspot.com
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