Relief Rally Ahead !

A sharply oversold market is now ready for a bounce. For India, Infosys results due on Friday morning may set the undertone for the next few days. The market is ready to go up on the slightest piece of good news. If Infosys guidance is pessimistic, we may react on the downside. But, the smallest hint of “we are going to do well” should see a decent rally in the stock market. The Nifty should open higher, and a rally to 3750 or 3800 seems easy and likely (assuming Infosys does not disappoint).
On the downside, I expect support to come in at 3500 (almost the point at which the Nifty closed on Wednesday).

Sectors for short term trading
If Infosys does not disappoint, then large cap stocks in the IT sector should be considered for swing trades. There is a buy on dips opportunity. All trades are short term.
PSU’s like NTPC, National Alum, ONGC, BHEL & State Bank come in the list of potential swing trades. I do not consider momentum stocks for trading in the current environment since they represent high risk.
HDFC Bank, CIPLA, HDFC, Zee, Grasim in the private sector represents opportunity.

Insurance for Bank Deposits:

I have a blog entry on insurance available on bank deposits. Read it here.