The two factors that will determine the strength of this rally in the coming few days are :
Indian markets rallied in synch with the global financial markets . We may see more buying in the coming days . Nifty traders can hold their long positions with a target of 8000 . However as the markets has moved up very fast there will be periods of profit taking .
We have to look at stock specific action as the market stabilizes at higher levels .
Two stocks that looks reasonable priced and can gain from good monsoons and improving fundamentals are :
With the buyback coming up Wipro will also be an interesting long term play . Wipro has one of the highest promoter holdings in the IT sector . It share price has been underperforming as compared to Infosys. Thus an attractive buy back may trigger market interest in this stock .
Will this buy back by Wipro be the precursor for a subsequent delisting of the stock ?