The Sensex is likely to open on a flat note. The index may witness downward pressure in the opening trades following the huge net sells by FIIs in the derivatives segment on Friday.The index is likely to face resistance around 12,290-12,300-12,320 levels. On the downside, the index may find support around 12,185-12,170-12,155 levels.According to market analyst Shah, the Sensex is likely to target 12,550 level. On the downside, the index has a strong support around 12,125, Similarly the Nifty support level is 3500-3520. Stocks to watch today are BHEL, SBI, Bank of Baroda, India Cements, Tata Tea and Bharat Forge.Another analyst Bharat Momaya, the Sensex is poised for a major upmove in coming days. The buyoancy in tax collections and expected better 2QE (September, 2006) results indicate a good time ahead for the market.Core sector companies (especially Cement and steel) and leading software companies are expected to perform well. At current levels, it is a good entry time for investors in such companies.He advises speculators / day traders to keep away from short selling as market may undergo sudden sharp and violent upmoves. Rumours of imminent major correction in the Sensex may keep on circulating in the market. But should be ignored since Sensex PE ratio of less than 21 times is quite comfortable for Indian markets.Macro factors are all indicative of positive bullish trend. Industrial production also showed a good performance in the current fiscal. GDP estimates were revised upward by IMF. Generally the mood is upbeat and is expected to remain so in coming months. So there is no cause of concern for the market.
