Much Awaited Rally In Small And Mid Cap Space Has Started. However, the government should come out with schemes to attract the retail investors.
Yesterday, Glodyne Tech Ltd hit the buyer freeze. Today also it is up more than 2%, on the news that, the company gave in-principal approval for preferential allotment of shares to private equity and other investors. I am expecting a series of upper circuits in the coming days, till Rs.21-22.
Kingfisher Airlines Ltd (KFA Ltd) has started paying salaries to its employees and is approaching the aviation regulator seeking a license renewal. Airports Authority of India (AAI) may consider giving a no objection certificate to the airline if it clears dues of 1.17 bln rupees and gives bank guarantee for the remaining. This will have a positive rub off effect on the shares of United Breweries Holdings Ltd, which (KFA Ltd) hit the upper circuits in the morning trade. CMP: Rs.64.70.
IVRCL Ltd recommended both the Paid and Free groups around Rs.28-29, today touched Rs.31.90. I am again repeating, most of the construction counters are expected to do well in the coming days, as the interest rate trajectory has reversed. The other two stocks which I strongly recommended earlier are ARSS Infrastructure Ltd (CMP: Rs.42) and IRB Infra Ltd (CMP: Rs.117).
Geodesic Ltd as expected hit the buyer freeze at Rs.14.05. The scrip should have been averaged by those holding long back. These are blue chips and you never know when they start hitting buyer freeze. I have earlier mentioned about Tulip Telecom Ltd (Rs.12.80) and Glodyne Tech Ltd (Rs.14.15).
The Indian Markets as anticipated, traded range bound yesterday for first half. It was more or less a dull session. However, strong buying interest during second half pulled Nifty straight to 5947 without any correction and Nifty settled at 5940 with a gain of 42 points.
A sharp "Bounce Back" from the level of XXX (Join the Paid Service to get the Full Report) shows an end of correction and increasing possibility of resumption of uptrend. The Nifty seems to have formed a temporary bottom. Since the morning Nifty is firmly held above 5920--5940 (Spot) ranges, which gives further confidence to the bulls. Buying has also continued in the MID and SMALL CAP space. Long position can be taken with a stop of XXXX (Spot). Nifty Spot is now at 5940.