Will Indian Share Markets test new highs?

The Indian Stock markets may continue their volatility. Investors should trade in select stocks with cautious optimism. Markets may be bullish due to Global sentiment and rise in copper price or bearish due to profit booking and rupee rise.

Market sentiment: Though sentiment is bullish, profit booking and rising rupee may become obstacles to the bulls.

Positive Signs:

1. Asian markets are in positive momentum.
2. Reserve Bank of India allowed Navaratna PSUs like HPCL, BPCL, IOC, ONGC and GAIL to invest in foreign shores without prior permission.
3. United Spirits may gain another 50-70.

Negative Signs:

1. Rupee is appreciating against dollar. It will spoil the plans and expectations of exporters.
2. Textile exports took a big hit due to rupee appreciation.
3. RBI tightened foreign borrowing for Real estate firms.
4. Metal prices may fall in the long term. But may be volatile in this week.
5. Investors may book profits in stocks like SBI and Unitech.
6. Fortis India may feel the heat of Tehran row.
7. Tata Motors plant in Singur is still in troubled water.

Stock pick of the Month:

1. Dr Reddys Labs:
It may touch 750-800 mark within 20-30 trading sessions. Its superb results and announcement of 2 SEZs will make this stock a hot one for investors.
Concern: Rising rupee may spoil the party.

Stock Recommendations for Day Traders:

1. Dr Reddys – Good results and 2 SEZs.

2. Everest Kanto – Stock split.
CMP: 1158.5
Target: 1180
Stop Loss: 1120

3. SAIL: It will announce good results.
CMP: 139
Target: 140.3 and 142
Stop Loss: 137.5

4. Sterlite India -Rise in copper price.


5. Cairn India
CMP: 144.5
Target: 147.5 and 150
Stop Loss: 139

6. ICI India – Rise in offer price.
CMP: 526.6
Target: 541
Stop Loss: 516.

7. Union Bank – China entry.

Business Standard Stocks of the week:

1. Reliance Industries
2. HDFC Bank
3. Moser Baer

For more information about other stock recommendations, Visit Business standard website.

Economic Times Stocks of the week:

1. SBI and Jai Prakash associates.
To know more about other stock picks, visit Economic Times website.

Reliance Money stock of the week:

1. Apollo Tyres.

ICICI direct stock of the week:

1. Bartronics India.
Please share your views on Indian stocks.