Market strongly reacted to remarks of Smt. Sonia Gandhi and put brake to the momentum. The only sector survived was IT. The IT index in fact rose when all other indexes plunged.
Some food for thought.
We had mentioned in our chat about the market talk about the future of Indian shares if we were to go closer to the forward P/E of 25 of Chinese index. FIIs consider Indian stocks second only to China and much Superior to other emerging markets. If we were to reach moderate valuation of 20 P/E the sensex should see 20,000+. The spoil sport now is the election song sung by all the parties. Just a weird thought........ 'what happens to sensex if after elections there is a trishanku parliament and another DeveGowda or Left form the next government.' Ha ha ha
Trend is your friend and the rampaging momentum flattening extreme short term looks negative. However in this market we give below our top technical picks for tomorrow.
TOP PICKS
SURANAIND
RIIL
TATASPONGE
TECHNOELEC
USHAMART
INDIANHUME
PANTALOON
STCINDIA
BAGFILMS
SUZLON
GARWALLROP
MLL
PANACEABIO
HTMTGLOBAL
SIMPLEXINF
BHEL
LT
ABAN
The best way to trade when trend is not favourable is to buy at yesterdays close and keep a strict stop loss at yesterdays low.
09 October 2007
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