Madness reached extremities in the mrkets

Indian Stock markets are moving in the opposite direction to the global markets in the recent sessions. I have reservations about yesterday’s steep rise as most of positions are short term. I strongly believe that this Bull Run may not last long. One thing is sure we are going to see another major correction in the coming days. Media is the major culprit in creating this hype among the innocent investors. Madness and hype reached to the extreme levels.

Stock of the week: Sterlite Industries.

Rumour of the day:

1. IT Department may conduct raids on the offices of irregular traders and offices.
2. HCL Tech will sign $100 million deal in Aerospace services.
3. Garware offshore may rise due to hostile bid rumours.

Significant News:

1. Price band for Spice Telecom IPO is Rs 42- Rs 46.
2. Jet will announce $400 million rights issue on June 26.

Positive Stock news:

1. Sterlite got wonderful response to its ADR.
2. Aurobindo Pharma received approval for Zidovudine from MCC of South Africa.
3. Jindal Saw and Adlabs announce wonderful results. Can they able to sustain this growth?
4. Dr Reddys will produce Rs 3 cardiac drug.
5. LIC Housing finance will launch reverse mortgage product within a month.
6. Indian Hotels announced good results.
7. Ipca Labs got US FDA approval for Hydroxychloroquine.
8. SREI Infra posted bumper results.

Negative Stock news:

1. Don’t go by the hype of ICICI Bank FPO subscription numbers. Your earnings will depend on the market sentiment on the listing time which seems to be bleak.

Best stocks for Day traders and investors:

1. Rico Auto: JV TALK.
2. Dena Bank: Bulk buying.
3. Sterlite: ADR success.
4. L&T: Order Talk.
5. HCL Tech: If rupee is stable against dollar.
6. Aurobindo Pharma:
7. LIC Housing finance.

My Pharma picks: (If markets are stable)

1. Aurabindo Pharma: Strong prospects of growth.
2. Matrix Labs: Strictly for long term.
3. Divis and Dishman Pharma: Good stocks but steep rise recently.
4. Jubilient: Long term.
5. Dabur Pharma and Suven Life Sciences: Closely observe for long term.
6. Panacea Biotech is a good bet in Biotechnology space.

Why some brokers are worst people in the world?

It is time and again SEBI is unearthing illegal activities by leading brokers. SEBI found fixing in F&O contracts by 24 market players on the National stock exchange. They have created artificial volumes in Futures and Options during January and March period. That’s why I advice investors to stay away from day trading and futures and options. Invest in good stocks and have sound sleep.

Some of the rogues are:

1. Indiabulls Securities.
2. Rakhi Trading.
3. Kasam Holding.
4. TLB Securities.
Please share your stock ideas.