Consolidation time on Dalal Street, Sensex to stay flat
Jun 03, 2009

Stocks on Dalal Street might pull back in early trade on Wednesday
after closing flat in Tuesday's trade. Expect the Sensex to gain
nearly 0ne percent, may be a bit short of the magic 15,000 mark.

Stocks on Wall Street tacked on modest gains Tuesday to extend a rally
to a fourth day following a strong rise in pending home sales
number.The Dow rose 19.43, or 0.2 percent, to 8,740.87 and the The
Standard & Poor's 500 index rose 1.87, or 0.2 percent, to 944.74, and
the Nasdaq composite index rose 8.12, or 0.4 percent, to 1,836.80.

The markets have traded in negative territory for the most of Tuesday
but managed to close above the dotted line in the final hour of
trade.Consumer durables, metal and auto sectors performed relatively
better than rest of the sectors. Tata Steel, SAIL and Tata Motors were
among the major gainers and these stocks are likely to be firm today.

We like some select stocks in today's trade.The stocks of Satyam
computer is likely to steal the limelight for the second day in a row
as there is some speculative build up by the operators ahead of the
closure of the open offer. The stock might touch Rs 70 in the coming
days and is a good bet for traders with risk appetite.

We also like the oil pack HPCL, BPCL & IOC ahead of the regualtion and
believe that there is still a 20-30 percent move left in these stocks.
Micap and smallcap stocks might cool off a bit, as they ae witnessing
some profit booking after a massive run up.

For today's trade watch out for tea stocks like Mcleod Russel, Infra
stocks like Orbit Corp, GMR Infra and last but not the least Power
Finance Corporation and NALCO might join the parade. Overall, expect a
positive day but not do not expect a big up move.

Key Levels for Today Trade:

NIFTY INDEX Resistance : 4553 / 4573 / 4587 / 4628 / 4653
NIFTY INDEX Support        : 4500 / 4482 / 4468 / 4430 / 4400
Mean/Pivot : 4526
Key Numbers on upside 4587 & 4628
Key Numbers at down side 4482
BANK NIFTY INDEX Resistance : 7380 / 7445 / 7547
BANK NIFTY INDEX Support     : 7256 / 7170 / 7084 / 6990

Previous Close Box:

BSE Sensex 14867.78 27.15
NSE Nifty 4525.25 -4.65
USD Rs.47.14
Oil Nymex $68.55

Research Desk
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