Indian share Markets may range-bound

Indian share markets are continuing their volatile sessions. Stock Markets may range bound today due losses in the past trading sessions. Most of the stocks are seeing heavy selling/buying without any specific reason. Investors in these stocks may suffer the fate of Teledata investors. Oil refining stocks (BPCL, HPCL and IOC) may rise due to drop in crude prices.

NSE: 4111
Support: 4090 and 4070
Resistance: 4144 and 4178.

Warning News:

1. RBI may increase CRR but not Repo rates – JPMorgan.
2. Business confidence was down in Q4 – FICCI Survey.
3. RBI sent strong warning note to banks. Stay away from public sector bank stocks.
4. Copper price fell on ending of Peru strike and profit booking. Be careful with Hindalco and Sterlite.
5. Indian ADRs lost yesterday despite rise in DOW.

Stock Picks for Day Traders:

1. Reliance Capital
CMP: 742.9
Resistance: 757, 772 and 781.
Support: 734
Global investment firms eye stake in Reliance Capital. This is a best stock for Long term investors. It may touch 1200 within 2 years. Forget short term fluctuations in Reliance Capital.

2. Reliance Communications
CMP: 466.5
Resistance: 474 and 481
Support: 461

Stay away from following stocks:

1. Real estate stocks may see some selling due to DLF IPO clearance from SEBI.
2. Deccan Aviation will not sell stake to King Fisher.
3. Public sector bank stocks may lose heavily due to RBI letter.

Stock picks for Long term Investors:

1. Reliance Communications
Enter into this stock at 400-430 level. It has big plans for the future growth. It plans nationwide rollout of DTH and Metro IPTV. It will spend 2.5 billion US Dollar in network expansion.

2. Stay away from Auto and Real Estate stocks. Oversupply of office space is a concern.


Rupee impact on Stocks (Credit Suisse report):

1. Gainers: Engineering and Construction Stocks, Reliance Communications, Oil refining stocks like BPCL, HPCL, IOC, Container Corporation, HT Media, United Breweries, Sterlite, Titan, Zee, Exide and Adani Enterprises.

2. Losers: IT Stocks, Pharma Stocks, Hotel and Tourism Stocks and some oil stocks like Essar Oil.

Share your ideas on the movements of Indian stock markets.