Indian Stock Markets on May 15, 2007

Indian Share Markets may fall in the initial trading session due to booking of profits by investors in stocks like SBI and Reliance Capital. BSE Sensex and NSE Nifty may range-bound after initial losses. Appreciation of rupee will spoil the fortunes of IT stocks.

Market Trend: Volatile/Bearish.

Warning News:

1. CAG slammed the IT department for under-assessing the income of Reliance Industries, Tata Motors and Bank of Baroda.

2. Rupee is appreciating again against dollar. Stay away from IT Stocks.

3. Asian markets are in bearish mood.

4. Indian ADRs suffered losses yesterday.

5. Copper price is in drastic down trend. Stay away from Hindalco and Sterlite.

Request for Medium/Long term investors:

1. Stay away from sugar stocks. It will take another 1 year to turnaround the fortunes of these companies. These Government sops will not remove the original problems of sugar industry.

Best Stock picks for Indian Day Traders:

1. Voltas:
CMP: 96.8
Target: 103
Stop Loss: 90
It posted 5-fold rise in Q4 profit while net sales rose by 38%.

2. Tech Mahindra:
CMP: 1530.9
Target: 1542 and 1558
Stop Loss: 1514
It announced alliance with Sun Microsystems to provide systems and software for IPTV services to customers in India and Asia pacific markets.

3. Network 18
CMP: 563
Target: 574
Stop Loss: 540
Reliance Capital acquired 5% stake in NW18.

4. Zee TV:
CMP: 284
Target: 287 and 290
Stop Loss: 280
It is very aggressive in forming alternate cricket league by including all time greats like Kapil Dev, Brian Lara and Glen McGrath.

5. Reliance communications will launch Blackberry in CDMA. Enter into this stock with some risk. You may enter this stock after initial losses.
CMP: 482.9
Target: 488
Stop Loss: 476

6. Granules India:
CMP:129
Target: 132 and 135
Stop Loss: 126.5
It received US FDA approvals for its 2 plants in Andhra Pradesh.

Negative News:

1. Stay away from Sun TV. Its battle with DMK government is getting murkier day by day.
2. Stay away from Thermax. Purolite of US files espionage suit against Thermax.
3. Stay away from Reliance Industries and Tata motor. CAG news may spoil the sentiment in these stocks.