Stocks rebound temporarily

Indian stocks will see sharp temporary rebound on the account of strong global cues. Sustainability of this rise will depend on future course of global markets.

Market movements: Dow Jones gained 286 points after initial volatility and Asian markets are rising from global cues. Indian markets will follow their global peers. Global markets are in a precarious situation. It is not an ideal time for retail investors to take short positions in markets. Stay away from futures and options. BSE Sensex may settle around 14,300-14,500 and Nifty at 4,100-4,200 in the near term. Take positions in over corrected stocks.

1. BSE Sensex:
CMP: 14903.
Target: 15060.

2. NSE Nifty:
CMP: 4339.
Target: 4403.

Positive Stock News:

1. Hindustan Unilever will announce winners of bids for real estate projects in Bengaluru and Mumbai on next Tuesday.
2. Wal-Mart and Bharti enterprises announced 50-50 joint venture for retail.
3. Bharti Airtel received LOI for DTH service and will launch its DTH services by March 2008.
4. Hindalco and Tata Power will jointly develop a coal block in Jharkhand.
5. Government should approve gas price before marketing – Cabinet secretary.
6. GVK Power announced financial closure for its Uttarakhand project.
7. Strides Arcolab acquired Italian company.

Negative Stock News:

1. Novartis lost Glivec case and will not appeal.
2. Surge in International crude oil price is a real concern.
3. Volumes are declining gradually in the last three days.
4. Sales of Ashok Leyland were down by 19% in July.
5. DCM Shriram announced massive loss in its Q1 results.

My Stock views:

1. FIIs are selling in a big way while Domestic institutions are using this opportunity to accumulate. Mutual funds are waiting in the sidelines.
2. Don’t underestimate the impact of US Subprime market. Global markets are closely interlinked in these days. FIIs will spoil in Indian party in the coming days but long term story is intact. Accumulate good stocks on every dip.
3. Sugar stocks will temporarily rise in this week due to disruption of supply (heavy rains).
4. Indian Real estate stocks are the most expensive ones. Accumulate DLF in the 500-530 range for long term investment.
5. Oil refining companies will announce surprise results in the next quarter due to earning s from oil bonds. Accumulate these companies.
6. I think stocks like Suzlon and Sterlite are over corrected due to weak earnings but its long term prospects are good.
7. Acquisition of Infocrossing by Wipro will benefit it in the next financial year.
8. If rupee stabilizes due to weak markets and RBI measures, IT stocks will see some contra buying.
9. Accumulate Sesa Goa and Mount Everest as promoters will announce open offers in the coming days.

Best Stocks for Day Traders:

1. Bharti Airtel: Wal-Mart, DTH, Google tie-up news.
CMP: 866.
Target: 878 and 889.

2. IFCI: If it breaks 64 (strong resistance).
CMP: 63.7
Target: 65.7 and 67.6

3. Reliance Communications.
CMP: 531.5
Target: 538 and 546.

4. GVK Power.
5. DLF, HDIL and GMR Infra may bounce back.
6. Hindustan Unilever.

Please share your views on my stock views.