Best Stock picks for Indian Day Traders

Indian Share markets may continue their volatility in the short term with no significant positive cues in the domestic or Global markets. Long term investors may enter into markets after impending correction. Short term traders should concentrate on few stocks especially Mid caps.

Market Sentiment: Volatile swings. IT shares may suffer heavy losses due to bad sentiment and rupee appreciation. Stocks like Reliance Capital may range-bound.

Warning News:

1. IMF said cooling effects of US subprime markets will affect other emerging markets.

2. H-1B issue: 2 US senators asked Infosys and Wipro to submit details of their workforce. Stay away from IT stocks unless Dollar appreciates against rupee.

3. Sun TV lost Rs 936 crore market capitalisation on BSE in the last 5 trading sessions.

4. Tata Tele posted unimpressive results.

5. IOC revenue loss per day on petro product sales is Rs 85 crore.

Positive News:

1. GVK Power & Infrastructure Ltd (GVKPIL), an infrastructure company, has completed a $300 million Qualified Institutional Placement (QIP).

2. Hindalco completed Novelis acquisition.

3. Moser Baer will buy 15%-20% of new releases this year.

Stock Recommendation for Medium Term Investors:

1. Bajaj Auto: Demerger of this company will enhance the value of Investors – Business Standard.

Best Stock Picks for Day Traders:

1. United Breweries: (Only on BSE)
CMP: 362
Target: 364 and 367
Stop Loss: 358
United Spirits:
CMP: 833.7
Target: 855
Stop Loss: 824
It acquired Scottish distiller Whyte and Mackay for an enterprise value of 550 million pounds

2. Reliance Industries: ( May open with very high)
CMP: 1598.5
Target: 1615 and 1634
Stop Loss: 1583
Reliance Industries made 2 gas discoveries in west coast and Krishna basin.

3. Hindustan Construction Company (HCC):
CMP: 98.2
Target: 100, 101.5 and 103
Stop Loss: 95
HCC bagged Rs. 735 crore irrigation tunnel work from Andhra Pradesh government.

4. Videocon:
CMP: 426.15
Target: 434
Stop Loss: 417
It plans to set up a LCD manufacturing unit in China.

5. Bharti Airtel: (High Risk with profit booking by investors)
CMP: 833.9
Target: 846
Stop Loss: 820
Bharti entered into Sri Lankan market. Its clash with Wal-Mart over brand usage may be dampener.

6. TVS Motors:
CMP: 62.2
Target: 63 and 64.2
Stop Loss: 61
TVS motors will launch new bike “Neo” in Indonesia.

7. Hindalco, Raymond and Moser Baer.