Perfect day for a debut

The long awaited DLF listing is going to happen today. All the factors point to a good listing:

1. The Nikkei is up 100 points and HangSeng up marginally. So no negatives from them.
2. Vishal Retail achieves a 181% rise on the listing day.
3. The Sensex has broken onto new levels.

That being said, we would advise a sell on listing, hopefully close to 600. The long term outlook for this stock, and the entire realty sector, is strong. But our overall short and medium term bearish view on the market makes us inclined to sell this on listing or shortly thereafter and get back in at a later time. We will wait for the listing and make our decision based on the actual performance.

A chart worth taking a look at is the Blackstone IPO. Like DLF, this was a mega issue in the US. Like DLF, it had a lot of concerns surrounding it's listing related to valuations, but still had a blockbuster listing, before finally going below the lower band of its IPO. Can we expect a similar listing for DLF? Let's wait and watch.



On the overall markets, given the reasons mentioned above, we should be able to enter the crucial 14950-15100 band, that we had been anticipating, today. We will naturally turn cautious. Watch for any topping signs.

The DOW should also show some negative moves tomorrow. It is now at a crucial resistance and we can expect it to react from there and this will have some implications for the Sensex on Friday