Trading Strategies For Three Buzing Sectors For Coming Week

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Retail, Telecom and Sugar ruled the D-street on the sectoral front for the week ended July 09, 2010. During the week India`s benchmark index, BSE Sensex gained 372.59 points or 2.13% to settle at 17,833.54. Meanwhile, the broad based Nifty rose by 115.35 points or 2.10% to settle the week at 5,352.45.

Retail:
Positive due to expected news of opening up of retail sector to foreign direct investment (FDI). Shares of retail stocks like Pantaloon Retail, Provogue (India) gained over 3% after the government pitched in for foreign direct investment in the sector on July 06, 2010.

Telecom: Heavy buying seen

Shares of telecom stocks rallied over 10% on Friday, July 07 after Credit Suisse upgraded the ratings.  The leading global financial services company with headquarters in Zurich upgraded the ratings of Bharti to `outperform` from `neutral`, Reliance Communications to `neutral` from `underperform`, and Idea Cellular to `outperform` from under perform.

Sugar: 
Looks positive - decontrol of sugar sector but surplus sugar may have some impact on pricing. Shares of sugar companies got a shot in the arm after agriculture minister Sharad Pawar said it`s the right time to decontrol the sugar sector. The front line stocks like Bajaj Hindustan, Shree Renuka, Balarampur Chini showed sharp positive movements.

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