Forecasts

Bullish trend resumes

We have a target for the Nifty of 4,288 by end-February 2007. Most results have been as per market expectations. Companies in telecom, IT and cement sector have done well. Pharma company results, however, did not live up to expectations. The market moved more or less sideways as most results were already discounted in the prices. I think the market should continue bullish due to anticipation on the back of budget policy. Then there can be a correction of 10 - 12 % from the peak. Till then, the outlook is positive.

- Vineet Birla, Technical analyst, Pranav Securities



The rebound of the market started after the RBI meeting on Wednesday. The US Fed too not raising any fresh alarm about inflationary pressures in the world's largest economy provided more fodder. I think the pre-budget rally has begun. The securities transaction tax (STT) is likely to stay flat in the forthcoming Union Budget. There is some speculation of the Government raising the ceiling for foreign shareholding in the aviation sector. We have been recommending aviation stocks to our customers for some time now. The budget seems to have some positives in store for the auto sector as well.

Technical charts suggest a buy signal for GMR Infrastructure and Hanung Toys. Both have formed a bottom. The volumes on GMR Infrastructure were particularly high today.

For the Nifty, the next target is 4,250 in the near-term.

- Gaurav Modi, Technical Analyst, Pragaya Securities