Indian Markets – Trade with caution

Markets are waiting for new triggers. BSE Sensex and NSE Nifty will continue their uncertainty. Concentrate on few stocks instead of index movements. Rupee appreciation is the only negative trigger which may spoil current Bull Run.

Market Trend: Volatile/ Bullish.

Significant news:

1. Crude price is returning to normal. You may get marginal gains in HPCL and BPCL.
2. US markets are stagnated and waiting for triggers like Indian markets.
3. Asian markets are in mixed momentum.
4. Rupee may touch 38.5 against dollar –UBS.

Stock picks for short and medium term investors:

1. SAIL: it may cross 160 in the short term.
2. Aftek: It will cross 80 in the short term.
3. JSW steel: Thiss tock may continue its bull run along with SAIL.

Stock Recommendation for Long Term investors:

1. Larsen and Toubro: It is consolidating its core business while entering future growth sectors like Shipping. Its P/E is also at attractive level. This is my stock pick for investors with 2-3 year horizon.

Stock recommendations for Day traders:

1. Bata: Reliance retail may tie up with Bata.
CMP: 169.9
Target: 174 and 177.5
Stop Loss: 167

2. NTPC:
CMP: 154.6
Target: 156.5 and 158.7
Stop Loss: 152.8
NTPC is to sell electricity to CESC.

3. Torrent Power: It signed a MOU with Gujarat power to set up 1000 MW power plant.
CMP: 75.7
Target: 78 and 80
Stop loss: 71.5

4. Tata Tea: (caution: Investors may book profits)
CMP: 878
Target: 897 and 916
Stop loss: 844

5. HPCL and BPCL.

Stock to watch out:

Reliance Industries, Bharat Forge, Reliance Communications, Tata tea, Ceat, RNRL, Tata Tele and Sun TV.

Dangerous stocks of the day:

1. Stay away from Dabur India as its flagship brand Glucose-D is in packaging troubles. Supreme Court restrained Dabur from using Glucose-D.

2. Stay away from Punjab tractors as this company reported 39% decline in profits.

3. Indian government scrapped 98% of IEMs obtained by sugar companies. Stay away from Bajaj Hindustan and Balrampur chini. Though this news may not impact them much, it spoils the positive sentiment.

4. Fortis and Trehan row may not end in the near term. You may buy Fortis health care stock at attractive price within 3-4 days.

5. Stay away from Alembic Pharma (poor results).

Results today:

1. ICRA
2. Divi Labs
3. Torrent Pharma.
4. NIIT Tech.

Please share your views on Indian stocks.