Sensex to breach 15,000, Selling to resume on Dalal Street Jun 17, 2009 Stocks on Dalal Street are likely to correct after a resilient Tuesday on the street. Bulls are in denial and as they are not willing to give up even after a 80 percent move up. Expect the Sensex to correct nearly more than 2 percent 0r 300 points to settle around 14,200 level.
More signs of a weak economy gave investors a reason to sell stocks for the second consecutive day on Wall Street.The Dow Jones industrial average fell 107.46, or 1.3 percent, to 8,504.67. The Standard & Poor's 500 index fell 11.75, or 1.3 percent, to 911.97, while the Nasdaq composite index fell 20.20, or 1.1 percent, to 1,796.18. We have seen some decent move in ADAG group companies yesterday with Reliance Capital and Reliance Infra making decent gains.We still believe that the market is not a safe place to be in the current markets. Selling pressure may be in Realty, Metal and some speculative midcaps. Unitech looks like a good bet for the shorts, as the company has announce plans to issue nearly a billion shares diluting the equity. We believe that the company has a long way to go and might face severe head winds if the economic crisis deepens.At around Rs 90 level, it looks over valued considering the effect of dilution on its earnings power. If by any chance, we see a spike on the news of the offering, sell this stock to make decent money for a target of Rs 82. Satyam Computers is one stock one could look for a bullish up move as the stock has consolidated at Rs 80 level. Traders with some risk appetite could look in to getting in to this stock for a target of Rs 85. This pick is strictly for traders.Max India (Rs 227) might spike and might breach the 52 week high of Rs 245 on news of possible sale according to a leading business daily. Wire & Wireless, Zee News, GSFC, Zee news are some of the midcaps to watch ahead of the Q4 numbers. Today might not turn out to be a good one for the bulls. We are not being a bear by being overly pessimistic. Just wanted to caution you that there is room for a pull back here. Long term investors who have a 18-24 month horizon there is nor reason to panic, if you are holding blue chips. Key Levels for Today Trade: NIFTY INDEX Resistance : 4530 / 4551 / 4572 / 4587 NIFTY INDEX Support : 4484 / 4449 / 4429 / 4393 Mean :4507 Key Number for NIFTY on upside 4551 Key Number for NIFTY on downside 4449 / 4393 BANK NIFTY INDEX Resistance: 7324 / 7393 / 7453 BANK NIFTY INDEX Support : 7205 / 7136 / 7067 / 6977 Mean :7264.5 Previous Close Box: BSE Sensex 14957.91 82.39 NSE Nifty 4517.80 33.80 USD Rs.47.76 Oil Nymex $70.46 Research Desk --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
