22-Sep-2009

Markets continued the uptrend and both Sensex and Nifty gained close to 3%. It was a commendable performance given the fact that the global markets and the overall sentiment were not very encouraging for most part of the week. More over the market breadth looked further better with 6 out of every 10 stocks traded in the F&O segment gaining more than 5% over the week. Banking stocks started from where they left last week and continued to rally. Metals, Auto, Infrastructure, Technology, Capital Goods and Pharma stocks were among the major gainers. It was a week where even laggards like Telecom, Shipping, Hotels and Aviation participated. The top Nifty gainers were

Markets are far stronger than what they looked like on the face of it. The rally has not seen participation from the heavy weights like Reliance, ONGC, NTPC, Bharti etc. One could imagine what it could have been if only these biggies participated. There is more steam left in the markets. It reminds of a typical secular bull run where all sectors participate in turns. It was banking which lead the rally during the past couple of weeks and now it is the turn of Infrastructure and realty. We expect the laggards to take the lead and keep the markets buoyant from here. We’ve already seen a hint of that happening on Friday, when ADAG group stocks started moving up. We may not see a very big correction in the indices atleast. Reliance breaching 2200 and we may see markets entering the next leg which may take Nifty towards 5600. Stay Long.


BUY
LITL @ 458-460 Tgt 500 SL 440
WIPRO @ 564-566 Tgt 584, 600 SL 555
HDIL @ CMP Tgt 360 SL 310
LICHSGFIN @ 750-752 Tgt 800 SL 740
IVRCLINFRA @ 372-374 Tgt 400 SL 366
UNITECH @ 110-111 Tgt 120, 132 SL 106


SELL
BANKINDIA @ 403-406 Tgt 380 SL 412
ORIENTBANK @ 233-234 Tgt 220 SL 240