Markets which traded in the tight range till last hour of the trade couldnt hold view the global cues and lost more than 200 points in the Bombay Stock Exchange.
The Dow Jones industrial average fell 92.12 to 9,949.36 and the Nasdaq composite index fell 12.74 to 2,150.73. This was mainly because of concerns about the health of the banking system touched off fears that the market is getting overheated.
Asian markets today too opened in red with NIKKIE loosing more than 1% , China and Hongkong losing nearly 0.4%.
Indian markets are expected to open gap down with weak sentiments abroad. Expect sensex to open 60-80 points lower and may slide in later part of the day. We expect some more correction in the banking space, as we believe that most of the stocks in this sector continue to be over valued at the current market price.
Mid cap IT is in limelight from last two sessions like polaris , NIIT Tech . we see some more stocks joining the bandwagon too.Watch out IT space as it is the only sector that looks immune to the carnage in the market.
After metal sector gaining with commodity prices increasing, we may see metal stocks correcting today .One can short the metal counters at the opening.
We advice members to cover short by mid day as we believe that there will be rebound in the later half of the day, as we have been sliding for the past few days we may see some buy back coming at lower levels . Some of the stocks to watch out for are NIIT Tech, Moser Baer, Yes Bank and Rolta.
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