Monday, June 29, 2009

Sectoral Analysis and Outlook for this week !

Weekly Sectoral review

BSE sensex gained 321 pnts during the week. Monday it lost 196 pts while it gained 419 pnts on Friday Outlook Bullilsh. Nifty gained 62 pts while it has jumped sharply on friday by 134 pts it had a bad Monday 22 June it tanked 78 pts, Thursday it lost 51 pts. The outlook ahead of Union Budget 2009-2010 is bullish and buy on dips could give better returns for investors.

Power index was up 2.37% and the outlook remains positive use dips to accumulate - GVK Power Torrent Power, Reliance for an upside of 25-30%

Realty index was up 3% on expectation of budget sops for home buyers. The raising of threshold limit of income tax relief expected 3 lakhs

On the back of dis-investment PSU index had a mixed week up by 1.84% look out to buy BEML and BHEL on dips for an upside of 15-20% in July

Oil Gas had a bad last week recovered backed by Reliance Industries. The outlook remains cautious on the back of international crude prices

After the sell off seen in the metal index recovered somewhat by 2.69% Tread with caution as the outlook is not very positive sell on rises

IT index ended smartly up 3.64% on back of good turn around expected from the US recovery. Watch out for guidance and invest in small lots

Healthcare index was down 1.49% on back of Sun pharma downfall. Accumulate mid cap stocks like dishman and divis for targets of 250 and 1500

FMCG index too had a insipid week and rose by mere 1% the delayed monsoon will be a cause for worry avoid investing in the short term

Consumer durable industry has posted a mere .35% rise and one can avoid this sector as it is likely to under perform the overall indices

Capital Goods index risen sharply 6% on the back of robust demand growth. Buy on dips both ABB and Siemen for target prices of 1000 and 750

Bankex recovered smartly during the week gaining 2.69% during the week. Buy on dips ICICI and UTI banks. Buy Yes bank, idbi target 150 125

Auto sector was biggest loser during the week - it lost 1.08% the strategy should be sell on rise both Mahindra 725 and Tata Motors at 370

Take advantage of dips which are expected next week and accumulate todays winners at lower levels. They will lead the next leg of rally

Trading for the July FnO started on a bullish note with sensex and nifty gaining 3% The outlook for the next week should be continued buying

Highlight of todays trading is that all the sectors except Healthcare all sectoral indices went up.Sun Pharma dragged HC index by losing 12%

ICICI bank surged by 8% during the day to close at high price of today at 754 Buy on dips around 700 for a target of 800

The biggest driver of todays market has been the banking sector which after a period of consolidation flared up by 4.37% outlook is positive

Bse Auto index was up 1.2% today with gainers Maruti, Bajaj auto Buy Tata Motors at 325 for a target of 365 for next week.

Outlook for next week

With initiative seized from bears Bulls will have strangle hold next - try to push the indices higher - target for Sensex 15000 Nifty 4500

Chief Investment Officer

Ravina Consulting
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