Hot stock picks for Indian day traders

Stock markets will continue to trade volatile with action is around some select scripts. RNRL, Idea, RPL and Ashok Leyland will continue to see huge volumes. If rupee depreciates against dollar, IT stocks will hog limelight. Asian markets are continuing their positive momentum.

Sector of the Day: Power.

Significant News:

1. Power sector stocks may gain due to PM remarks on investments.
2. Monsoons touched Kerala shores.
3. I don’t believe in the growth story of Raj TV. Book profits.

My stock picks for Long term investors:

1. Wyeth Labs: Its earnings will rise once its research facility yields results.
2. GMR Infra: It will cross Rs 1000 by the time of Hyderabad international airport inauguration.
3. Idea cellular: Believe in this stock. Forget short term fluctuations.
4. Tata Power: It is well placed to utilise the “power boom”. Power sector will see a lot of action in the coming years.
5. Tata Motors: One lakh car will permanently change the dynamics of Indian car industry.

Enter into these stocks after correction in the stock markets which will happen shortly.

Hot Stock picks for Indian day traders:

1. Jaiprakash Hydra power: Good long term bet.
CMP: 34.15
Target: 36.8
Stop loss: 30
Prime minister comments on hydro power.

2. Ashok Leyland:
CMP: 37.4
Target: 38 and 38.6
Stop Loss: 36.2
Announcement on new innovative trucks.

3. Hero Honda: (If it breaks 690)
CMP: 687
Target: 695
Stop Loss: 672
It plans to build Rs 12,500-13,000 motor cycle.

4. Ranbaxy:
CMP: 383
Target: 387.5
Stop Loss: 378
Acquisition of dermatology brands.

5. Deccan Aviation:
CMP: 136.6
Target: 140.5
Stop Loss: 132
SBI may give extension on loans.

6. Idea cellular:
CMP: 126.2
Target: 128. 3 and 130
Stop loss: 124

7. Larsen and Toubro:
CMP: 1785
Target: 1816
Stop Loss: 1744
L&T will announce good results.

8. Reliance Communications
9. Reliance Energy
10. Tata power, Torrent power and NTPC

Stocks to watch out for:

GMR Infra, Unitech, Dr Reddys and Thermax.

Stay away from following stocks:

1. Reliance Industries: Jamnagar SEZ violation of norms.
2. Raj TV: Mad rise in this stock does not justify its inherent strength.
3. Stay away from Adani enterprises.

Please share your views and recommendations on Indian stock markets.