Range-bound market expected, ahead of 20th Sepetmber Fed meet: Rally on Small and Mid cap Counters to continue:

The markets as expected started in the green today and also the markets will end in the green, as the US markets are Buoyant and there is some clarity on the interest rate front. But the Sensex is finding difficulty to cross 12,000 mark, while Nifty is much fluid at this level.

I do not know why people are sticking to United Western Bank Ltd(BSE Code--->500430), when there are so many banking counters to be invested. Overall though people are saying that banking sector is bullish but I do not find any interest in this sectors as almost all the parameters are looking negative, and the credits growth not expected to be more than 20% this fiscal. Exit immeditely United Western Bank Ltd before this share turns into junk. The bank is in a very bad shape and today it might hit the lower circuits.

From today we can see the increased activities in the Construction, Cement and to certain extent on the metal counters. After monsoon the construction activities have started to pick up and will continue to generate steam in the days to come. Also the Hotel stocks look attractive, ahead of festive season. The hotels in Gujarat will be a major catch as the governemt there has announced lot of fiscal incentives to the hospitality sector, which I will mention in the following mails. The sectors which will be a direct beneficiary to the fall in Soda Aash price will be glass sector, in this space I have already mentioned about an undervalued stock, whose products are used in Pharma, Brewerie, FMCG, etc sectors.

There might be some intermediate corrections but that will be of very low value like, yesterday. That markets will race ahead of 12,000 points, before Durga Pooja is now a forgone conclusion. The second quarter results will start to pour in from the next month, which will be much better than the first quarter results. FII money have started to flow in and the momentum will increase in the days to come. Hence, markets will now move in only direction...UP...UP....UP....

Today's recommendations:

Buy:

1.Garnet Construction Ltd at Rs.44

2. BSEL Infrastructure Realty at Rs.50

3. Haldyn Glass Ltd at Rs.42.10

4. Gujarat Hotels Ltd. at Rs.53

5. Zenith Computers Ltd at Rs.78

6.V....I....

7. K......E.......

8.T.....I.....

Sell:

1. United Western Bank at Rs.17.--->Just sell it and take home Ur cash.

2. Tilak Nagar Industries Ltd

3. Alstorm Projects Ltd

4. Balrampur Chinni Ltd

5. Dwarikesh Sugar Ltd

6. FAG Bearnings Ltd

Hold:

1. Hazoor Media and Power Ltd above Rs.12

2. Soma Textiles Ltd above Rs.32

3. Rana Sugar Ltd above Rs.32

More in the following postings....

Best wishes,

Suman Mukherjee

India