Indian Day Trader’s Guide – April 10, 2007

Indian stock markets may lose around 100-200 points due to heavy selling in IT stocks and unreasonable rise on Monday. I can’t understand why some investors are madly buying IT stocks on Monday. Are there in right frame of mind?

Global Cues: Rupee appreciated against Dollar and Euro. Stay away from IT shares and export dependent company stocks. Asian markets are spiralling downwards.

Watching Point:

Bank of Japan’s decision on interest rate. Except Hong-Kong market, all other Asian markets lost around 0.5%.

Daily Stock picks for Day Traders:

1. Sesa Goa: As per reports, Mittal’s bid for Sesa Goa is around Rs 2,200 per share. This share may rise around 30-60. It’s power plant gets UNFCCC approval for carbon credits
2. Sun TV: Obtained stay against TDSAT directive on channel sharing.
3. NDTV: Interest of private equity investors raised the valuation of this media giant. It may apply for an IPO in the US or UK.
4. Pantaloon: It is leasing its properties to Reliance retail, Shopper’s STOP, Trent and Life style.
5. Jet Airlines: Out of court settlement.
6. Lanco bags order from DVC.

Exit /Stay away from following stocks:
1. IT Stocks: All are bad news. You will see heavy selling in IT counters. Rupee appreciation, mad rise on Monday, Service tax on leased and rented premises, Lowered expectations on future growth prospects may spell doom for IT Shares.
2. Sugar Stocks: Sugar prices will lower on weak domestic demand and increased sugarcane production worldwide. Wait for the completion of UP elections before buying these stocks.
Request for Short-term Indian Stock market Investors:
Stay away from IT Shares, Banking Stocks, Auto Stocks and Real Estate shares.
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