Volatility will return to Indian stock markets

With uncertain cues from global markets, Indian stock markets will again return to volatile zone today. BSE Sensex and NSE Nifty will find it difficult to break resistance zones. Rupee depreciation is the only factor that can move these indices into higher zones. Will it happen? Watch out.

Global Markets: US Markets are ended in negative zone while Asian markets are in positive zone.

Sector of the day: IT Stocks may bounce back id dollar appreciates.
Stock of the day: State Bank of India- Merger of 4 wings with SBI.

Warning News:

1. The Directorate general of Hydrocarbons slashed the estimates of gas discoveries by GSPC and ONGC.

Significant news:
1. Government is planning to auction 80 oil blocks for exploration in August.
2. Government is planning to disinvest 10% stake in Oil India along with IPO later this year.
3. Cabinet may give nod to Mittal-HPCL deal.
4. Wadias (Britannia) will end their dispute with DANONE.
5. Tata Motors will launch 1 lakh car in early 2008.

Positive stock news:

1. Melstar will buy 14.4% stake in GE Shipping.
2. PSL bagged Rs 380 crore order.
3. UB Holdings make an open offer to the equity shareholders of Deccan Aviation. Offer price is Rs 155 a share and open between July 25 - August 13, 2007.
4. Ranbaxy got tentative US FDA approval for Amlodipine.
5. BHEL is increasing power equipment manufacturing capacity.
6. Yahoo partnered with Idea cellular in Mobile search.
7. Gillette sold Gurgaon property for Rs 78 crore.
8. BEML may bounce back today.

My stock picks for medium term investors:

1. Hindustan Construction Company.
2. Hitachi Home.
3. Royal Orchid Hotel – Safe bet even for long term.

Stock picks for value investors:

1. FDC Pharma.
2. ITI Ltd.
3. Himachal Futuristic Communications.
4. RSWM.

Safe stocks for Long term investors:

1. Bharti Shipyard.
2. Wire and Wireless – with some risk.
3. Nagarjuna Constructions – Wait for correction.
4. Tata Motors.

Stocks of the Day:

1. State Bank of India.
2. Ranbaxy.
3. Melstar.
4. Tata Power.
5. Tech Mahindra-watch out for rupee.
6. Satyam-watch out for rupee.
7. Deccan Aviation.

Please share your views on my stock picks.