Volatile Indian Share Markets

Indian Share markets were highly volatile yesterday due to ending of derivative contracts. Long term investors should stay away from the Stock Markets. Markets seem to be in uncertain mood. It is better for investors to wait and watch. If inflation will rose, markets will suffer heavy losses in the late trading session. Watch out for inflation mark.

News of the day:

1. India is showing ‘classic signs of an overheating economy,’ with high growth and accelerating inflation – Moody Investor services.
2. India entered into $ 1 trillion GDP economy list.

Best Stock picks for the Day Traders:

1. Hotel Leela
2. Reliance Industries
3. Reliance Communications
4. Sun TV
5. Sesagova
6. Hindustan Zinc
7. SKF India

My observations:

1. Tata Tea may see some profit booking.
2. Reliance Communications may rise today.
3. Suzlon Energy may lose today due to shut down of 44 wind turbines.
4. Cipla, Deccan Aviation and Marico may lose today due to unimpressive results.
5. TCS and Wipro may lose today due to unexpected rise yesterday.
6. Reliance may rise today due to good results and unexpected loss yesterday.
7. Pharma stocks are in the hot seat due to US approvals and acquisitions.
8. Long term investors should stay away from stocks which are near all time high like SAIL, Sun Pharma, ABB, Air Tel, Ipca labs etc.
9. Medium term outlook for Sugar stocks is not good. Enter into these stocks at low levels but not at this time. Wait for another month.
10. Indian Share Markets are not following their global markets in the recent sessions.
11. Hero Honda is now near 52 week low.
12. Shree Renuka sugars is a good bet for long term investors.
13. Utilize Sesagova open offer.

Positive News of the Day:

1. Reliance Communications and Alcatel –lucent deal.
2. Computer Sciences Corporation (CSC) will acquire Covansys for $1.3 billion.
3. Teledata suffered reverses for the first time in the recent memory.
4. Sun TV will launch a children’s channel.

Negative news of the day:

1. Price of Mind Tree consulting was manipulated on the IPO listing.
2. Low cost airlines Air Deccan posted a loss of Rs 213 crore for the third quarter.
3. 44 wind turbines operated by Suzlon Energy were shutdown yesterday due to protests from local residents.

Please share your ideas.