Daily Call - Nov 23 2009

Banking stocks surged late in Friday session, as rumors of Dena bank being taken over by Canara bank spread. If permitted it would be a welcome beginning for the whole host of mergers in the space. Banking stocks had already seen a large addition in open interest on Friday, and punters may book profit today at higher level.



Markets have come back from 5080-5180 resistance twice. We need RIL fire power to go past this critical zone and trace towards 5300. Reliance’s bid for LyondellBasell, if successful, would be India’s highest buyout till date. RIL’s underperformance of more than 35% in last 6 months makes us believe that if markets were to go up from here, RIL will lead that rally. The big boy looks set to provide leadership before it goes ex-bonus this Thursday.