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Tuesday, April 22, 2008

India Stocks Outlook: Volatile Wed ahead of Apr F&O expiry


Tuesday, Apr 22

    Key share indices are likely to remain volatile Wednesday, as investors roll over positions to May derivatives contract a day ahead of expiry of the April series.

   Movement in local shares will also be determined by cues from overseas markets. US futures were slightly up today after mixed earnings from companies and ahead of important housing data.

   Today, Nifty closed at 5049.30, up 12.30 points, or 0.2%, from Monday. Sensex ended at 16783.87, up 44.54 points, or 0.3%.
   Also, NSE's volatility index or VIX rose 30.85% from Monday.

   Nifty is likely to move in a 200-points range in the next couple of sessions, with stock-specific action. It has resistance at 5100-5125, beyond which it could see a further 40-45-point gain.Nifty is likely to find support at 4994.

   Support for the Sensex is seen between 16250-16400 while resistance is pegged at 17000.
   Real estate and bank shares could outperform the market in coming sessions as they look strong on technical charts.
   We are particularly positive on Unitech and said the stock could attain its target of 299/315 rupees in 1-2 weeks.
   Among banks, HDFC Bank looks strong on technical charts and can touch 1,800 rupees in the next 10-12 sessions
   Information technology shares are likely to remain weak as investors continue to book profits after the recent rise in the sector. 
 
 
 
 

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