Indian stocks will open on positive note

Indian stock markets will open on positive note on Monday due to rise in global markets. But Overall sentiment is bad but this range bound volatility will continue for some more time. Rupee will continue its march between 40.4-41.2 against dollar. If CBDT circular will spoil the whole sentiment, Nifty will touch 3600-3700 by Friday.

Major concern: Liquidity. Will markets face liquidity crunch after ICICI Bank issue?

Market sentiment: BSE Sensex may move between 14,100-14,300. Nifty will oscillate in the range 4,190-4,230.

Dangerous news:

1. Will US federal bank rise interest rates on June 28?
2. Crude is at 9 month high.
3. Rupee appreciation against dollar.
4. CBDT issue on share taxation is a big worry.

Significant stock news:

1. ICICI Bank fixed price band for its FPO at Rs 885-950.
2. Government may increase FII investment in oil PSUs from current 23% to 49%.

My stock for Long term investors:

1. EID Parry: Mutual funds have started accumulating this stock at low prices. Duration 1-2 years.
2. Long term investors should stay away from IT and Textile stocks and shares of companies whose business is mainly depended on US exports.
3. Weakness in dollar will continue against international currencies coupled with slow down in US economic growth will leads to major correction in International stock markets.
4. It is better for cautious long term investors to stay away from the markets until this volatility is over.

Positive stock news:

1. Kingfisher joined the race to acquire SpiceJet.
2. Aurobindo Pharma received US FDA approval for Tralandopril.
3. BHP Billiton may buy 51% stake in Ashapura Minichem’s Aluminium project in Orissa.
4. Cranes Software will buy Proland Software.
5. Indiabulls tied up with Europe’s Strabag SE.
6. NTPC is in race to set up power exchange.

Negative news:

1. Hindalco and Nalco slashed Aluminium prices.
2. Unsatisfactory progress of monsoons.
3. Oil prices are in upswing.
4. Hindalco will see selling pressure.


Best stock picks for day traders and investors:

1. BEML:
2. Sparsh BPO: Stake sale.
3. Orchid Chemicals: It may bounce back.
4. Aurobindo Pharma: US FDA approval.
5. Ashapura Minichem: Stake sale.
6. Dewan Housing and S Kumars nation: Positive momentum.
7. Royal Orchid hotels.
8. Mahindra&Mahindra: New Scorpio launch.

Please share your views on my stock analysis.