Unpredictable markets-news based trading

Indian stocks are moving in unpredictable ways with momentum is concentrated on few select stocks. One thing is sure correction due within a short period. Investors may take long positions in blue chips after the correction. Risk taking investors may buy stocks like EID Parry, Wire and Wireless, FDC Pharma, Berger paints and Rajashree sugars.

Stock advice: Don’t believe in the rumours of Hindalco and IDEA take overs.

Sector of the day: Sugar. IT Shares will be in reckoning if Dollar appreciates against rupee.

Market sentiment: Unpredictable markets. Forget index. Concentrate on select stocks.

Significant news:

1. Government will create 3 million tonnes of sugar buffer stocks to check fall in prices.
2. Aircel, Spice and Idea may merge to form a new entity. Invest in Idea for medium term. Target- Rs 145.

Positive Stock news:

1. Unitech received nod for establishment of IT SEZs at Greater Noida and Kolkata.
2. Cement companies like ACC and Gujarat Ambuja announced increase in sales.
3. Sterlite ADS will be listen in Mid June.
4. Parsvnath launched Rs 6 billion township.
5. ONGC bought stake in 3 Brazilian blocks.
6. JSW steel posted 36% jump in crude steel production.
7. Fortis appointed new medical team at Escorts heart institute.
8. Bajaj will launch LPG bike soon.

Negative stock news:

1. Bombay high court rejected Reliance Energy plea on MTHL.

Best Indian stocks for day traders:

1. Mount Everest: Open offer to buy a further 20% stake by Tata Tea at Rs 140.
2. Idea Cellular:
3. Sterlite:
4. GAIL: (with risk).
5. JSW Steel:
6. MTNL:
7. Shree Renuka sugars.
8. NIIT Tech: (Closely watch rupee value).

Stocks to watch out:

1. ONGC.
2. Parsvnath developers.
3. Fortis healthcare.

Please share your stock views.