Wednesday, April 23, 2008

More short covering expected before expiry

Market ended on a positive note amidst choppiness. Sensex was up 44 points at 16783 while Nifty ended at 5049 up by 12 points. IT index underperformed due to below than expected results by TCS.

Buying was visible in stocks like Ansal Infrastructures, Unitech, DLF and GMR Infrastructures. We expects markets to open positive on Wednesday and is bullish on infrastructures stocks. Stock specific action likely to happen in the next few trading sessions.

Stocks to be watched out include Tata Teleservices Maharashtra, Ankur Drugs, Ranbaxy, Glenmark Pharma, Unitech and Ansal Infrastructures.

Nifty rollover figures are encouraging and we may see some more short covering before expiry. We had seen huge short positions in Tech stocks and the trend will continue for some more time.

Nifty may face minor resistance at 5075 and 5100 and above that it will test 5135. The ongoing rally will be terminated either on Thursday evening or on Friday afternoon. So investors should take cautious approach especially while Nifty trading above 5129.

Short term long positions can be initiated in IVRCL Infra, Escorts, IDBI and Nagarjuna Fertilizers & Chemicals.

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