Bulls might get some breathing room after a massive sell off Stocks look for a slightly higher open after witnessing a sharp plunge in yesterday's trade. Better than expected advance tax collection numbers in the first quarter and some sever correction in the past few days might give bulls a breathing room. Expect the benchmark index or the Sensex to trade in a band of nearly 1 percent with some upside momentum.
Stocks mostly fell Wednesday, on Wall Street. The market was held back by FedEx's weak profit forecast,downbeat comments about the economy and a ratings downgrade of 18 banks by S&P gave investors a reason to sell stocks. The Dow Jones industrial average fell 7.49, or 0.1 percent, to 8,497.18 after moving in and out of positive territory during the day. The broader S&P 500 index fell 1.26, or 0.1 percent, to 910.71, and the Nasdaq composite index rose 11.88, or 0.7 percent, to 1,808.06. We have seen a deep correction in Realty and Metals sectors and these sectors likely to be under pressure even in today's trade. Tata Steel was a major loser among the NSE-50 stocks and there is some more room for correction in the coming days. Stay away from Realty stocks. We have recommended investors to do some 'short selling' in Unitech and this has worked well. The stock made a high of Rs.92 and reached an intra day low of Rs 82, which coincided with our intra day target. One sectors that looks healthy even in this chaotic scenario is healthcare. We like Fortis Healthcare on a pull back here as the might be reaping the benefits of growing hospital industry and also the consolidation. Wockhardt Hospitals is again in news, as the company sold its German unit and is also looking sell stake in its hospital business. This might bode well for Wockhardt in the long run. We like the generic drug market, as this space is likely to attract great deal of interest in the coming days. Cipla Ltd, Reddy's and Aurobindo stand out in this space along with Sun Pharma. Investors who would like to play safe can look in to this sector as these stocks have been defensive plays in volatile market.ABG Shipyard, On Mobile Ltd, Berger Paints and GSS America might be the stocks in the midcap space to closely watch ahead of some key events. B.Karthick Research Analyst --~--~---------~--~----~------------~-------~--~----~ 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 -~----------~----~----~----~------~----~------~--~---
