Correction will continue in June due to IPOs

Markets are in the dangerous territory. DLF and ICICI IPOs will suck big amounts from markets in June. Stock markets will continue to trade in this volatile zone for another 20-30 days. If investors accumulate money, they can buy some good stocks at attractive valuations. This is the only happy news in this month. Sometimes correction is also good. Newly entered traders and investors will suffer heavy losses in this whole episode.

Dangerous news:
1. Rupee may fall below 40.50 Vs dollar on the account of increased inflows due to big IPOs.

Most significant news:

1. Slow down in the growth of coal, cement and steel sectors in the first month of current financial year.
2. Petroleum refinery and power sectors showed improvement in growth.
3. Closely watch Berger paints stock as it will announce results today.

Positive stock news:

1. Jammu & Kashmir bank is planning to list in foreign markets.
2. Reliance capital is planning to enter into i-banking.
3. Reliance gas price bids may get clearance from government shortly.
4. Strides Arco labs acquired Grandix Pharma for 100 crore.
5. Hero Honda motors will enter into 4-wheeler components business.
6. Ispat group will invest $3 billion in Bangladesh.
7. GV Films will buy 10% stake in animation company “Sanara”.
8. Yashraj films will tie up with Disney to produce animation films.
9. Yashraj films may form JV with Blackstone group to enter into exhibition business.

Negative Stock News:

1. 10% price correction in the last 6 months in housing sector.
2. Courier companies stocks will suffer heavy losses due to 40% decrease in speed post charges.
Stock advice:
1. Buy Idea, RPL, RNRL and Zee Tele on declines.

Stocks to watch out:

Patni Computers, Jammu Kashmir bank, Berger paints and Reliance.

Note: I will not publish my daily recommendations until June 14 due to busy personal work.
Happy trading.