Tuesday, November 13, 2007

Watch out for mid-caps

The 30-share BSE Sensex opened with a negative gap of 267 points at 18,640.52 in the morning trades. In the initial half hour trading session, the index was down by 500 points backed by heavyweights and weak Asian cues. Selling pressure was witnessed across board.

It traded weak for most part of the day. Though the Sensex covered most of its losses during the end of the day, it closed on a negative note.

Commenting on this technical analyst of IRIS, Vishwas Agarwal said that the overall global markets fall also impacted the Indian investor sentiments. However, buying interest in some stocks helped pep up the market and eventually covering major part of the losses witnessed during the day.

He added that buying pressure was witnessed in power and banking sectors on news that the government is going to clear both Reliance Power`s IPO and SBI`s rights issue very soon.

Vishwas points out that the market still looks volatile and expects mid-caps to outperform the frontliner stocks. He recommended Petronet LNG, IFCI, Tata Power, NTPC and Tata Chemicals for trading with nominal stoploss.

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