Correction will continue in Indian stock markets

In the recent days, Indian stock markets bounced back after every fall since March. But this time, correction will continue according to global sentiment along with profit booking and panic selling. There are no significant positive triggers to propel markets into next territory. US and European markets fell yesterday due to interest rate hike and rising inflation concerns. Except China, all Asian markets are trading in negative zone.

Major Concern: If Nifty breaks 4090 final support, this correction will go a long way. If Nifty gets enough support at 4140 level, Day traders can play with favourites like IFCI, RNRL, RPL etc.

Market movement: Bearish/Heavy crash. Today session will give a clue about future direction.
Stock of the Day: Ispat Industries. Take long term position in this stock. Take medium-long position in Idea if it falls below 118.

Sector of the Day: IT Stocks if rupee continues to be weaken.

Stock Advice:

1. If rupee continues to fall, IT stocks may recover to boost the market sentiment.
2. Accumulate money to invest in good stocks when they will be available at attractive prices.
3. Invest in DLF IPO to get good returns. Markets will be in bull phase at the time of DLF listing.
4. Exit from rupee and penny stocks. There will be no buyers when this Bull Run is over.
5. Closely follow ITC, Tyre stocks, you will get good price to invest by the end of June.

Significant news:

1. There are signs of overheating in Indian economy – C. Rangarajan.

Positive stock news:

1. UTV is in consultation with ABC News to launch a business channel.
2. IT industry would require 5 lakh people within the next 5 years.
3. 3-G Mobile services will be announced by the end of this month and Spectrum sharing by the end of this year. Positive news for Mobile operators.
4. Indian real estate will get $6 billion FDI in the coming years.
5. Ashok Leyland will not cut production like Tata Motors.
6. Aviation sector may get boost due to liberalisation in FDI. Aviation stocks are good medium-long term bets.

Negative stock news:

1. Russia banned Indian food imports. Stay away from rice exporters.
2. European central bank hiked interest rate. Will RBI follow?
3. NTPC is not giving any bonus issue.
4. 2-wheelers reduced output due to weak sales. More correction is due in Hero Honda, Bajaj Auto and TVS Motors.

Best stocks for Indian traders:

Advice: It is better to stay away from markets and watch out the unfolded action from sidelines.

1. Cambridge Solutions:
CMP: 127
Target: 129 AND 132.
Stop Loss: 125

2. Ispat Industries: Wonderful results.
CMP: 15.2
Target: 16.4

3. Alstom Projects: Project order.
CMP: 569
Target: 582
Stop loss: 556

4. Geojit Financial services: Best stock pick for short-medium term investors.
CMP: 41.4
Target: 44 and 47
Stop loss: 38

5. Strides Arcolab: It received 2 more NDA approvals from US FDA.

6. Suzlon Energy:

7. MTNL: It may bounce back. It emerged as top bidder for Suntel.
CMP: 160
Target: 164.8
Stop loss: 155

8. AIA Engineering: Results are to be announced today.

Stocks to watch out:

1. UTV.
2. ONGC.
3. Idea.
4. ITC.

Please share your analysis and views on my stock recommendations and also share your stock picks.