Indian stocks may range bound

Indian stock markets may range bound today due to weakening rupee and lower inflation data. Day traders can make good gains if they trade smartly. Expiry of derivative contracts is the major obstacle.

Sector of the Day: IT Stocks and Banking. Dollar appreciation will be a positive trigger for IT stocks.

Stock recommendations for Long term Investors:

1. Tata Tele – Good scope for growth (1-2 year horizon). It will touch Rs 50 within 12-18 months.
2. Wire and Wireless – It will touch Rs 200 within 2 years. This stock is strictly for long term investors.
3. Larsen & Toubro – I still believe in the growth of this stock. It will cross Rs 2200 in June. Safe stock for long term investors if they forget short term fluctuations.

Best Stock picks for Day Traders:

1. Idea Cellular:
CMP: 122.85
Target: 126 and 129.5
Stop Loss: 120

2. Dena Bank:
CMP: 42.9
Target: 45 and 47.5
Stop Loss: 41

3. Ranbaxy:
CMP: 389.45
Target: 397
Stop Loss: 382

4. Infosys:
CMP: 1906.15
Target: 1943
Stop Loss: 1880

5. Gitanjali Gems:
CMP: 189.3
Target: 191.7
Stop Loss: 187

6. Reliance Communications:
CMP: 501.5
Target: 514
Stop Loss: 490

7. Air Deccan:
CMP: 130.9
Target: 135
Stop Loss: 127

8. NTPC, SAIL and L & T: (With risk)

My Views:

1. Stay away from oil refining stocks like BPCL and HPCL.
2. Tata power and Reliance Energy may range bound.
3. IT stocks will hog limelight today.
4. Investors can enter into RPL, SAIL and Hindalco if these stocks suffer losses today.
5. Banking stocks may gain on inflation data.

Stocks to watch out for:

IT Stocks, Punj Lloyd, Cummins India, JP Hydro power, Wire and Wireless, Apollo hospitals, Fortis Healthcare, Tata tea and Tata chemicals.

Significant News:

1. SEZs of Ambani brothers are in trouble.
2. IDEA and Spice Telecom merger.
3. Kingfisher and Air Deccan merger.

Please share your stock recommendations here.