Indian stock markets will consolidate in the coming days due to profit booking and negative triggers. Inflation will rise due to rising crude prices and IT giants will post unimpressive results. Too much rise in realty stocks is a real concern. There will be heavy selling in these stocks in the coming sessions. Don’t forget, it is consolidation but not crash.
Global cues: US markets once again ended on positive note. Tata motors ADR and VSNL ADR are significant gainers.
Stock of the day: Vishal Retail. I recommended this IPO for exceptional earnings. Investors who got allotment will get 100-150% returns on the listing day. Vishal will list around Rs 550-600 and may even touch Rs 650-700 within one week.
Significant news:
1. RBI is optimistic on economic growth.
Positive stock news:
1. IOC may acquire stake in Petkim of Turkey.
2. Reliance and Bharti short listed for Qatar mobile license.
3. Temasek will buy 5% stake in Bharti Airtel.
4. Eicher motor announced good sales overcoming bad sentiment.
5. Prism cement may continue to gain.
6. Ashok Leyland signed JV with Finland Company.
7. Bombay rayon bought Leela laces.
8. India Foils stake sale.
Negative stock news:
1. Moody downgraded Tata Power on account of aggressive expansion.
2. No hike in fuel prices-Political decision. Stay away from HPCL and BPCL.
Stock advice:
1. Exit from RNRL and RPL. Returns are minimal from these prices.
2. IDBI and IDFC may move upwards at anytime. Closely watch these stocks.
3. Today is crucial for IFCI. If it crosses 66, it will touch 75 within 2 days.
4. Book profits in GMR Infra and enter into this on dips. Too much rise within a short period is always a concern.
5. Dena Bank and Deepak Fertilisers are safe ones in this consolidation mood.
6. Ashok Leyland may continue to gain in the short-medium term.
7. NSE barred Futures and Options in IFCI and Nagarjuna Fertilisers.
8. ONGC may move upwards at any time. Keep an eye on this stock.
Stock picks for day traders:
1. Vishal Retail.
2. India Foils.
Note: I will partially book profits in my holdings. I may enter Dena bank, PFC and Fortis in the coming days at appropriate time. I hold my IFCI holdings irrespective of short term changes.
Wednesday, July 4, 2007
Are you ready for consolidation?
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6 comments:
namaskar doctor,
excellent analysis as usual for 4th july. but can you pl let me know why you like fortis. i bought 125 @ 105 and never again got the opportunity to exit.
regards!
rajiv malik
You will soon get opportunity to exit this wonderful stock. If you can invest for 2-3 years, it is the safest one.
Hello sir, I like your post very much. I just wanted to ask u, what made u change your view on RPL?? Any specific reason behind it. What are your views on DLF for long term. 2 to 3 yrs?? Will be waiting for your reply, and also your future posts. Have a nice day.
Dear Amol, Both DLF and RPL will become real heroes in 2009-10 financial year but not now. Buy DLF at 420-460 range with 2 year horizon, it will give exceptional returns. RPL is trading stock for another 6 months. Buy RPL around 100-105, it is a multibagger for long term investors. Thank you for your comment. Keep posting your valuable opinion.
Hello sir,
Can you please let me know why you have advised to quit from RNRL .
can I hold Ispat Industries for long term?
RNRL is a traders stock until it will convincingly cross Rs 41-44. If you are a trader, you can enter at Rs 29-31 and exit around Rs 38-40.
Ispat is a wild bet. We should allot 5% of our holdings to these wild bets. There is so much activity is going in this stock. They are doing massive expansion plans. Only worry is their debt and modalities of restructuring. I still not sold my shares bought at Rs 14.2. There may be 20% downside chance but if they continue to post the turnaround results, Ipsat is a gold mine.
Promoters should improve their credibity after all they are Mittals.
Will it become another SAIL?
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