Indian Stock Markets will rebound on Global cues

Indian stock markets will rebound today on positive cues from Global and Asian markets. Dollar appreciation and fall in crude oil will increase the positive sentiment. BSE Sensex may open with more than 100 points rise but short-medium term outlook remains negative while stock specific news based trading will continue in the next 2 months not an ideal environment for real investors. Nifty may touch 4200 and retreat back. Investors may closely watch DLF IPO subscriptions to get an idea about realty stocks. Nifty will trade between 4200-4170.

Positive News:

1. Reliance may get 5-year extension in KK basin.
2. Jet Lite may operate in international routes.

Stock of the Day: Glenmark Pharma.

Stock advice:
1. Invest in Vishal Retail IPO.
2. Vishal retail IPO will give better returns than DLF IPO on the listing day.
3. Short term sentiment is bad for markets. Serious investors should stay away from markets until markets give a clear signal.

Best stock picks for Long term investors: (Buy them on dips).

1. RNRL: Target is Rs 100 by 2008-09.
2. BHEL and L&T:
3. Dishman Pharma.
4. KSB Pumps.
5. Tamilnadu news Print.
6. Idea cellular: Target Rs 250-300 by 2008.
7. Wire and Wireless and Dish TV: Buy them immediately and hold them for 2-3 years for stunning returns.
8. Sun TV: Fundamentals are strong.
9. Gateway Distriparks.
10. Power is the best sector for Long-term investors.
11. Ispat Industries.

Best stock picks for this week:

1. Hindustan construction Company.
2. Idea cellular: It may touch Rs 129 again.
3. AIA Engineering: Good results.
4. Dr Reddys labs.
5. Unitech: depends on DLF IPO response.

Dangerous stock of the week:

1. Hindalco: I may never understand why some investors buy some stocks? Operators irrationally lifted Raj TV stock in May now they fall back on Hindalco. SEBI should monitor these activities. Hindalco may rise another Rs 5-10, it will return back to Rs 145-150 levels soon.

Hot stocks for Investors and Traders:

1. Glenmark Pharma: Stock split.
2. Reliance Capital: Market sentiment.
3. Reliance Communications: Market sentiment.
4. GAIL: Unexpected fall in the last week..
5. SAIL: JV with JAYPEE and recent fall. High Risk.
6. Kinetic Engineering: Order from Tata motors.
7. Mahindra and Mahindra: Chinese tractor company acquisition.
8. Dr Reddys: Steroid drug launch.

Indian markets will continue to follow Global markets in the coming days. Don’t take long position in any high value stock. Q1 results may increase the P/E valuations and spoil the mood.

Please share your views on my stock recommendations.