The markets opened with gap up today as the cues from global markets were supportive and traded with substantial gains through the day before closing strong. Most of the beaten down sectors like realty, power, and metals were strong today. FMCG and banking stocks were also in focus.
Sensex ended up 415.71 points or 2.50% at 17023.72, and the Nifty closed up 91.20 points or 1.88% at 4929.45. on BSE, about 900 shares advanced, 2068 shares declined, and 47 shares were unchanged. BSE midcap was up 0.24% at 7075.53 and smallcap was down 1.35% at 9049.70.
Rahul Mohindar of viratechindia.com is not too optimistic on Unitech. He also does not favour Essar Oil, RNRL and IFCI. He said that Tata Steel and Reliance Industries would definitely be amongst the better picks.
On Unitech:
I don’t read today’s move particularly as an up breakout, unlike metals where there seem to be a lot more positive cues. But Unitech, the kind of bounceback that we have seen, I am trading this more as an intra-day volatility and not as a medium or long-term breakout. I think some stability might come into the stock from here but I wouldn’t be a buyer here whether I was trading the futures segment or the cash.
On Essar Oil, RNRL and IFCI:
I think none of three I would be a taker. It’s the short-term volatility which is going to be very tricky in these counters. So I would stay away from these. I would say, stay with the largecaps because that’s where there is going to be stability. If one looks at banking, metal, some of the index heavyweights like ITC, Reliance - maybe these are the ones which would first give us the sense that the market is entering a stability mode or breaking out. So I would stay with the largecaps, none of these three would be in my buy list.
On Tata Steel, Reliance Industries & ICICI Bank:
From a medium to short-term perspective, Tata Steel and Reliance Industries would definitely be amongst the better ones. For Tata Steel I would put out Rs 840-850, I think that’s reasonably possible over the next two-three months.
Reliance Industries - I think Rs 2,200 will be a key support for it on the short-term below which I would place a stop-loss and attempt an aggressive buy here.
Disclosure: It is safe to assume that my clients & I may have an investment interest in the stocks/sectors discussed.
Source: Moneycontrol.com
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