Six hot stocks (Jan 5-9)

During the last week, Friday saw the announcement of yet another rate cut in CRR, repo and reverse repo by the RBI and a stimulus package being announced by Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission. These measures should see the markets opening strong next week, but there are resistances to be surmounted before we can say that the worst is over and that things will be better from here onwards.

Banking shares and fertiliser shares look good and should gain. There is also another story doing the rounds that Gujarat will remove the 30% of profits to be distributed to charitable purposes by state PSUs. This move is expected in the next few days and if it is to happen, it will be announced before the biennial event 'Vibrant Gujarat', which is scheduled to be held on January 12 and 13.

The markets this week seem to have done very well for themselves and there seems to be a common link with all of them gaining 6% and more, but less than 7%.

Also Read: Week ahead: Markets may open strong | Weekly wrap: Sensex gains 629 pts