Day traders guide for Indian Stock market – April 12, 2007

Today is going to be another worst day for markets. BSE Sensex and NSE Nifty may lose heavily due to bad news from global markets and warnings from RBI and IMF. Markets may lose around 200 points.

IMF and RBI issued warnings to the investors about the effects of rising inflation and rapid credit growth. As per IMF report, investors may not be giving sufficient weight to downside risks leaving markets vulnerable to the possibility of a shock. The risks are being amplified by the increased linkages across financial products and markets

Statement of the Day: Inflation may touch 7% - RBI Governor.
News of the day: The International Monetary Fund (IMF) has forecast that Indian economy will grow at 7.8 per cent in 2008.

Global Markets:

Global markets lost heavily due to concerns about rate hike, rising inflation and slow down in US economy. Japanese market is the worst sufferer. All the Indian ADRs lost marginally.
Crude oil price: It rises due to unexpected decline in Gasoline supply.

IFCI and TCS will rise while Sesa Goa will lose.

Stocks for Day traders:

Ranbaxy and GAIL are some positives stocks.
Reliance Capital entered into online trading through flat fee structure.
Pantaloon and ITC tie up for food segment.
Ballarpur industries will announce results today.
Reliance Communication and Sun TV ink pact for mobile content.
Blue Dart plans to spend Rs 220 million in South.

Stocks to be avoided today:

Exports of textile products to the US were declined by over 3% in dollar terms during January 2007, as compared to the corresponding month a year ago.
Stay away from Idea and Bharti Airtel due to decrease in subscriber additions.
Car sales hit 13 month low – Stay away from Maruti.
Novartis may stop further investments in India.
Gujarat Ambuja Cements Ltd’s (Rs.107.85, Sell) March shipments have fallen by 4.5%.