Indian Stock Markets on May 17, 2007

Indian stock markets may fall in the initial trading due to booking of profits. Markets recovery may depend on Rupee appreciation and crude price. Day Traders may enter into my stock picks after the settlement of initial mayhem (15-30 minutes).

Market sentiment: Bearish and Volatile.

Significant News:

1. Copper prices are falling. Stay away from metal stocks.
2. Crude price is falling. Oil refinery stocks may hog limelight.

Stock Picks for Day Traders:

1. Tata Power:
CMP: 588.3
Target: 595, 603 and 614
Stop Loss: 574
Tata power signed MOU a contract with Doosan heavy industries (Value 4,100 crore).

2. Tata Tele:
CMP: 27.35
Target: 28.4 and 30
Stop Loss: 25.9
Tata Tele is in 50:50 JV with Virgin Mobile to introduce Virgin brands in India.

3. Glenmark Pharma: (With some risk)
CMP: 642.8
Target: 653
Stop Loss: 629
It received approval for Parvostatin. Enter into this stock after initial selling (if any).

Positive Stock News:

1. Wipro bagged “SAP Pinnacle award” in software solutions area.

Negative Stock news:

1. Essar steel SEZ is in troubles. It will see massive selloff from investors.
2. Raj TV may not grow much.
3. Export duty may land Indian diamond industry in troubles.
4. Wockhardt and Abbott are in legal tussle. Stay away from Wockhardt.

Please share your stock picks.