Midcaps on fire, time to take a pause
Aug 26, 2009

Stocks in Indian markets are likley to be flat and with negative bias,
inspite of the good news from abroad. Expect the Sensex to trade in
aband of 1 percent or 150 points with odds in the favour bears have
chance to win the battle for the day.

On Wall Street a rebound in consumer confidence and more healing in
the housing industry have put stocks back on an upward path.The Dow
rose 30.01, or 0.3 percent, to 9,539.29. The Standard & Poor's 500
index rose 2.43, or 0.2 percent, to 1,028.00, while the Nasdaq
composite index rose 6.25, or 0.3 percent, to 2,024.23.

Book profits in Oil and Oil related stocks as we have seen a sharp
fall in the crude prices. Oil prices tumbled $2.32 to $72.02 a barrel
on the New York Mercantile Exchange. Prior to trading Tuesday, prices
had climbed 8.1 percent in just 5 days. Stocks like Alpha Geo,Selan
Exploration Jindal Drilling and Hindustan Oil exploration had
incredible gains in  the past month and it is a good idea to take some
money off the table.

IT and Consumer Durables were major gainers yesterday and the stocks
in these sectors are likely to move sideways. The stock of Suven life
was active on announcement by the company that it is in talks with
global majors for a partnership for its Alzheimers drug. The stock hit
20 percent circuit at Rs 31. We recommend investors to wait for a pull
back to enter the stock. A pure speculative play.

We maintain our pessimistic view on the markets in the short term, as
we foresee a correction in the near term. Midcaps are getting too hot
and it would be great for the market if there is a some consolidation,
before a move up. Karuturi Global, Alps Industries and ISMT are some
of the midcaps to watch in today's trade.But Volume can determine
Anything -- Stay Cautious.


"USE EVERY RISE TO BOOK PROFITS"
"ALWAYS KEEP STRICT STOPLOSS TO AVOID HUGE LOSS"

Previous Close Box:

BSE Sensex 15688.47 59.72
NSE Nifty 4659.35 16.55
USD Rs.48.79
Oil Nymex $71.69

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