Daily Call - March 23 2009

As we usher in a new week, the Nifty carries over the desire to close above the 2840 mark. On the lower side, it will have to ensure that it does not tumble lower than 2700. We believe that the cash lying in the sidelines and the fact that many stocks have seen sudden upward moves, makes the environment better for buying stocks rather than selling. But no outright buying. Buy the dips till the 2840 resistance is not broken,when it becomes a full throttled buy.

In the US, the financials have lost steam and the commodities also showed signs of slowing down their surge as the Dollar made a comeback. But for today, don’t get carried over by any bullish Asian markets. Keep your balance and avoid the large caps like Reliance and L&T. Mid-caps like PSL, Bata and Financial Technology could do well. This is also the time to lock in Dividend Yields. We have an elaborate article inside on this bear market strategy.