Profit booking in the late session

Indian share markets rise in the early session due to strong cues from global markets. Profit booking will be seen in the late session due to rise in inflation and unsustainable valuations. FIIs are buying in the Indian stocks while Retail investors and domestic institutions are selling for the last 2 days. Just imagine the plight of Indian markets if FIIs withdraw money from Indian markets as in May, 2006. I will not recommend fresh investments in stocks like Reliance, SBI, ICICI, GMR Infra, L&T etc. Markets may rise in the short term but single negative news is enough to spoil the market sentiment.

Global cues: US markets rose on strong earnings. Crude price is stable.

Stock of the day: Satyam Computers.

Rumour of the week:

1. Reliance will buy stake in Cipla. Talks are going on. Watch out for news.

Significant news:

1. ABN Amro downgraded Reliance with a target of Rs 1,300. My target for Reliance is 1,500. I can’t imagine the market movement when Reliance is really in such a precarious condition.

2. Finance minister cautioned the investors about risks involved in stock markets.

3. Biggest risk in the Indian stock market is valuations. High valued stocks are rising further making the current markets extremely vulnerable to correction.

Positive News:

1. Jindal steel bagged $ 2.1 billion dollar contract from Bolivian government.

2. Reliance Communications sold 5% stake in tower business for Rs 270 billion rupee.

3. Renuka sugars board meet on July 26 to mull GDR issue.

4. L&T posted 130% rise in net profit. All the good news are factored in this stock.

5. Ashok Leyland posted 28% increase in net profit.

6. Ranbaxy announced wonderful results with 118% increase in net profit.

Negative News:

1. ACC reported 15% fall in net profit in Q2. Decrease in other income is the major reason.

2. Wipro will continue to lose its value for another 30-40 days. If rupee continues to appreciate, mid-sized IT companies will be worst hit.

3. Spice Communications valuations are unsustainable. It got premium listing just on account of positive sentiment in the telecom sector. Book profits.

Stock advice:

1. Invest in Omaxe IPO. Attractive pricing and low valuations are the major reasons.

2. Closely watch Tata Tele and Idea as they crossed resistance levels.

3. Long term investors should not invest in stocks like Divis, Reliance and other unrealistically valued stocks. Search for sound stocks at low valuations or keep your money in banks for some more time.

4. Hindustan Dorr-Olive is another good stock with strong growth prospects.

5. Consolidation in IFCI and IDBI is good for real investors. Accumulate on each decline.

6. Orchid Chemicals and Welspun Gujarat announced good results. Good growth.

7. Stay away from Zee News. Don’t take fresh exposure in this stock.

Safe stocks in this Bull Run: (Downside is limited)

1. Dr Reddys Labs and Ranbaxy.
2. IFCI and IDBI.
3. DCM Shriram is a contrarian buy. Land sale news will come at any time.

Best stocks for Day Traders and Investors:

1. Satyam Computers.
2. Tech Mahindra.
3. Reliance may continue to gain.
4. Reliance Energy may bounce back on orders.
5. Idea may continue its march if markets are strong.

Please share your stock recommendations here.

Indian stock markets are in upswing

Indian markets will open on positive note and move upwards on positive inflation data. Inflation may be around 4.7%. Book profits today on short positions as it is a bit difficult to predict Monday situation.

Market Movement: BSE Sensex may trade in between 14,250-14,370 while Nifty may oscillate between 4,190-4,210. Sentiment is positive due to rise in global markets with no significant negative triggers.

Unconfirmed Insider news:

1. MIC Electronics will announce some significant news by Saturday. Buy today and sell on Monday according to the insiders (at your own risk).

Most significant News:

1. Bombay stock exchange revised upward circuit filter for 12 stocks.

Positive Stock news:

1. Jet Airways may buy stake in Spicejet.
2. TV18 group may launch Marathi news channel (JV with Lokmat).

Negative Stock news:

1. Crude oil price is rising.
2. ICICI Bank housing loan growth declined to 20%.
3. Crisil downgraded Hindalco from AAA to AA.
4. Pharma stocks will be affected fixing of some drug prices by government.

Best stock picks for day traders:

1. SpiceJet: Stake sale. It may continue to rise.
2. Ruchi Soya: Stock split.
3. Hind Rectifiers: Stock split.
4. Elecon Engineering: Bonus Issue.
5. IDBI: Launch of Mutual fund.
6. Dabur India: It may gain 2-3%.
7. Panacea Biotech: Wonderful results.
8. Tata Tele: Launch of Rs 770 mobile phones.
9. Alembic: Financial restructuring.
10. Lupin may continue to raise on US approvals.
11. IDFC: Hutch stake sale.

Stocks to watch out:

1. Shipping Corporation of India.
2. Power Finance Corporation.

Please share your opinion on my stock recommendations and share your stock picks.

Indian stocks may range bound

Indian stock markets may range bound today due to weakening rupee and lower inflation data. Day traders can make good gains if they trade smartly. Expiry of derivative contracts is the major obstacle.

Sector of the Day: IT Stocks and Banking. Dollar appreciation will be a positive trigger for IT stocks.

Stock recommendations for Long term Investors:

1. Tata Tele – Good scope for growth (1-2 year horizon). It will touch Rs 50 within 12-18 months.
2. Wire and Wireless – It will touch Rs 200 within 2 years. This stock is strictly for long term investors.
3. Larsen & Toubro – I still believe in the growth of this stock. It will cross Rs 2200 in June. Safe stock for long term investors if they forget short term fluctuations.

Best Stock picks for Day Traders:

1. Idea Cellular:
CMP: 122.85
Target: 126 and 129.5
Stop Loss: 120

2. Dena Bank:
CMP: 42.9
Target: 45 and 47.5
Stop Loss: 41

3. Ranbaxy:
CMP: 389.45
Target: 397
Stop Loss: 382

4. Infosys:
CMP: 1906.15
Target: 1943
Stop Loss: 1880

5. Gitanjali Gems:
CMP: 189.3
Target: 191.7
Stop Loss: 187

6. Reliance Communications:
CMP: 501.5
Target: 514
Stop Loss: 490

7. Air Deccan:
CMP: 130.9
Target: 135
Stop Loss: 127

8. NTPC, SAIL and L & T: (With risk)

My Views:

1. Stay away from oil refining stocks like BPCL and HPCL.
2. Tata power and Reliance Energy may range bound.
3. IT stocks will hog limelight today.
4. Investors can enter into RPL, SAIL and Hindalco if these stocks suffer losses today.
5. Banking stocks may gain on inflation data.

Stocks to watch out for:

IT Stocks, Punj Lloyd, Cummins India, JP Hydro power, Wire and Wireless, Apollo hospitals, Fortis Healthcare, Tata tea and Tata chemicals.

Significant News:

1. SEZs of Ambani brothers are in trouble.
2. IDEA and Spice Telecom merger.
3. Kingfisher and Air Deccan merger.

Please share your stock recommendations here.

Hot stock picks for Indian day traders

Stock markets will continue to trade volatile with action is around some select scripts. RNRL, Idea, RPL and Ashok Leyland will continue to see huge volumes. If rupee depreciates against dollar, IT stocks will hog limelight. Asian markets are continuing their positive momentum.

Sector of the Day: Power.

Significant News:

1. Power sector stocks may gain due to PM remarks on investments.
2. Monsoons touched Kerala shores.
3. I don’t believe in the growth story of Raj TV. Book profits.

My stock picks for Long term investors:

1. Wyeth Labs: Its earnings will rise once its research facility yields results.
2. GMR Infra: It will cross Rs 1000 by the time of Hyderabad international airport inauguration.
3. Idea cellular: Believe in this stock. Forget short term fluctuations.
4. Tata Power: It is well placed to utilise the “power boom”. Power sector will see a lot of action in the coming years.
5. Tata Motors: One lakh car will permanently change the dynamics of Indian car industry.

Enter into these stocks after correction in the stock markets which will happen shortly.

Hot Stock picks for Indian day traders:

1. Jaiprakash Hydra power: Good long term bet.
CMP: 34.15
Target: 36.8
Stop loss: 30
Prime minister comments on hydro power.

2. Ashok Leyland:
CMP: 37.4
Target: 38 and 38.6
Stop Loss: 36.2
Announcement on new innovative trucks.

3. Hero Honda: (If it breaks 690)
CMP: 687
Target: 695
Stop Loss: 672
It plans to build Rs 12,500-13,000 motor cycle.

4. Ranbaxy:
CMP: 383
Target: 387.5
Stop Loss: 378
Acquisition of dermatology brands.

5. Deccan Aviation:
CMP: 136.6
Target: 140.5
Stop Loss: 132
SBI may give extension on loans.

6. Idea cellular:
CMP: 126.2
Target: 128. 3 and 130
Stop loss: 124

7. Larsen and Toubro:
CMP: 1785
Target: 1816
Stop Loss: 1744
L&T will announce good results.

8. Reliance Communications
9. Reliance Energy
10. Tata power, Torrent power and NTPC

Stocks to watch out for:

GMR Infra, Unitech, Dr Reddys and Thermax.

Stay away from following stocks:

1. Reliance Industries: Jamnagar SEZ violation of norms.
2. Raj TV: Mad rise in this stock does not justify its inherent strength.
3. Stay away from Adani enterprises.

Please share your views and recommendations on Indian stock markets.

Indian Markets – Trade with caution

Markets are waiting for new triggers. BSE Sensex and NSE Nifty will continue their uncertainty. Concentrate on few stocks instead of index movements. Rupee appreciation is the only negative trigger which may spoil current Bull Run.

Market Trend: Volatile/ Bullish.

Significant news:

1. Crude price is returning to normal. You may get marginal gains in HPCL and BPCL.
2. US markets are stagnated and waiting for triggers like Indian markets.
3. Asian markets are in mixed momentum.
4. Rupee may touch 38.5 against dollar –UBS.

Stock picks for short and medium term investors:

1. SAIL: it may cross 160 in the short term.
2. Aftek: It will cross 80 in the short term.
3. JSW steel: Thiss tock may continue its bull run along with SAIL.

Stock Recommendation for Long Term investors:

1. Larsen and Toubro: It is consolidating its core business while entering future growth sectors like Shipping. Its P/E is also at attractive level. This is my stock pick for investors with 2-3 year horizon.

Stock recommendations for Day traders:

1. Bata: Reliance retail may tie up with Bata.
CMP: 169.9
Target: 174 and 177.5
Stop Loss: 167

2. NTPC:
CMP: 154.6
Target: 156.5 and 158.7
Stop Loss: 152.8
NTPC is to sell electricity to CESC.

3. Torrent Power: It signed a MOU with Gujarat power to set up 1000 MW power plant.
CMP: 75.7
Target: 78 and 80
Stop loss: 71.5

4. Tata Tea: (caution: Investors may book profits)
CMP: 878
Target: 897 and 916
Stop loss: 844

5. HPCL and BPCL.

Stock to watch out:

Reliance Industries, Bharat Forge, Reliance Communications, Tata tea, Ceat, RNRL, Tata Tele and Sun TV.

Dangerous stocks of the day:

1. Stay away from Dabur India as its flagship brand Glucose-D is in packaging troubles. Supreme Court restrained Dabur from using Glucose-D.

2. Stay away from Punjab tractors as this company reported 39% decline in profits.

3. Indian government scrapped 98% of IEMs obtained by sugar companies. Stay away from Bajaj Hindustan and Balrampur chini. Though this news may not impact them much, it spoils the positive sentiment.

4. Fortis and Trehan row may not end in the near term. You may buy Fortis health care stock at attractive price within 3-4 days.

5. Stay away from Alembic Pharma (poor results).

Results today:

1. ICRA
2. Divi Labs
3. Torrent Pharma.
4. NIIT Tech.

Please share your views on Indian stocks.

Stock Markets may see some correction on tuesday

Indian stock markets will correct on Tuesday due to profit booking, rupee appreciation and rise in crude oil price in the initial session. Markets may recover to some extent in the afternoon session.

US markets gave no significant clues while European markets rose due to rise in metal and crude prices. Indian markets will not follow global and Asian markets on Tuesday (My opinion).

Sentiment: Bullish/Volatile.

Positive trigger:

Rise in metal prices. Metal stocks will shine on Tuesday.

Warning News:

1. Crude oil price surged past $70 due to unrest in Nigeria. Reliance and Government oil refining stocks will suffer losses.

2. Front line stocks like Reliance Industries rose too much without any reason. This may play spoilsport to the market sentiment.

Stock recommendation for long term investors:

1. Idea Cellular:
Stock will cross 250 within one year due to exponential growth in Telecom space. This is the safe bet for long term investors.

Hot Stock picks for Day Traders:

1. Raj TV:
CMP: 262
Target: 271 and 277.
Stop Loss: 252
DMK-Raj TV alliance will trigger short-term growth for this network. It may cross 300 in this week. It bagged licences to launch 3 new channels.

2. TV 18:
CMP: 850
Target: 881
Stop Loss: 807
It forms an alliance with Virgin comics. It plans to launch an entertainment channel.
Caution: Investors may book profits in the initial session.

3. Orbit Corporation:
CMP: 229.5
Target: 233 and 237
Stop Loss: 222
Net profit rose 8,533% while sales rose 4,190%.

4. Satyam:
CMP: 447.5
Target: 457
Stop Loss: 443
Satyam signed contract with Hawker Beechcraft Corporation.
Caution: Rupee Vs Dollar.

5. Ranbaxy:
CMP: 400.7
Target: 403.5 and 406.5
Stop Loss: 398.3
Ranbaxy received approval to market Pravastatin in Canada.

6. Sterlite, Hindalco and Hindustan Zinc- Closely watch metal prices.

7. Dr Reddy’s Labs: Unexpected loss on Monday.

8. Reliance Energy and Reliance Communication will continue their bull run.

9. Closely watch Wockhardt, Tata Motors and NDTV.

Negative Stock Picks for Investors:

1. Stay away from SUN TV. Its quarrel with DMK government hits nadir.
2. Stay away from Everest Kanto.
3. Stay away from oil refining stocks like HPCL, BPCL and IOC.
4. Stay away from Apollo Tyres.

Please share your stock recommendations.

Will Indian Share Markets test new highs?

The Indian Stock markets may continue their volatility. Investors should trade in select stocks with cautious optimism. Markets may be bullish due to Global sentiment and rise in copper price or bearish due to profit booking and rupee rise.

Market sentiment: Though sentiment is bullish, profit booking and rising rupee may become obstacles to the bulls.

Positive Signs:

1. Asian markets are in positive momentum.
2. Reserve Bank of India allowed Navaratna PSUs like HPCL, BPCL, IOC, ONGC and GAIL to invest in foreign shores without prior permission.
3. United Spirits may gain another 50-70.

Negative Signs:

1. Rupee is appreciating against dollar. It will spoil the plans and expectations of exporters.
2. Textile exports took a big hit due to rupee appreciation.
3. RBI tightened foreign borrowing for Real estate firms.
4. Metal prices may fall in the long term. But may be volatile in this week.
5. Investors may book profits in stocks like SBI and Unitech.
6. Fortis India may feel the heat of Tehran row.
7. Tata Motors plant in Singur is still in troubled water.

Stock pick of the Month:

1. Dr Reddys Labs:
It may touch 750-800 mark within 20-30 trading sessions. Its superb results and announcement of 2 SEZs will make this stock a hot one for investors.
Concern: Rising rupee may spoil the party.

Stock Recommendations for Day Traders:

1. Dr Reddys – Good results and 2 SEZs.

2. Everest Kanto – Stock split.
CMP: 1158.5
Target: 1180
Stop Loss: 1120

3. SAIL: It will announce good results.
CMP: 139
Target: 140.3 and 142
Stop Loss: 137.5

4. Sterlite India -Rise in copper price.


5. Cairn India
CMP: 144.5
Target: 147.5 and 150
Stop Loss: 139

6. ICI India – Rise in offer price.
CMP: 526.6
Target: 541
Stop Loss: 516.

7. Union Bank – China entry.

Business Standard Stocks of the week:

1. Reliance Industries
2. HDFC Bank
3. Moser Baer

For more information about other stock recommendations, Visit Business standard website.

Economic Times Stocks of the week:

1. SBI and Jai Prakash associates.
To know more about other stock picks, visit Economic Times website.

Reliance Money stock of the week:

1. Apollo Tyres.

ICICI direct stock of the week:

1. Bartronics India.
Please share your views on Indian stocks.

Best Stock picks for Indian Day Traders

Indian Share markets may continue their volatility in the short term with no significant positive cues in the domestic or Global markets. Long term investors may enter into markets after impending correction. Short term traders should concentrate on few stocks especially Mid caps.

Market Sentiment: Volatile swings. IT shares may suffer heavy losses due to bad sentiment and rupee appreciation. Stocks like Reliance Capital may range-bound.

Warning News:

1. IMF said cooling effects of US subprime markets will affect other emerging markets.

2. H-1B issue: 2 US senators asked Infosys and Wipro to submit details of their workforce. Stay away from IT stocks unless Dollar appreciates against rupee.

3. Sun TV lost Rs 936 crore market capitalisation on BSE in the last 5 trading sessions.

4. Tata Tele posted unimpressive results.

5. IOC revenue loss per day on petro product sales is Rs 85 crore.

Positive News:

1. GVK Power & Infrastructure Ltd (GVKPIL), an infrastructure company, has completed a $300 million Qualified Institutional Placement (QIP).

2. Hindalco completed Novelis acquisition.

3. Moser Baer will buy 15%-20% of new releases this year.

Stock Recommendation for Medium Term Investors:

1. Bajaj Auto: Demerger of this company will enhance the value of Investors – Business Standard.

Best Stock Picks for Day Traders:

1. United Breweries: (Only on BSE)
CMP: 362
Target: 364 and 367
Stop Loss: 358
United Spirits:
CMP: 833.7
Target: 855
Stop Loss: 824
It acquired Scottish distiller Whyte and Mackay for an enterprise value of 550 million pounds

2. Reliance Industries: ( May open with very high)
CMP: 1598.5
Target: 1615 and 1634
Stop Loss: 1583
Reliance Industries made 2 gas discoveries in west coast and Krishna basin.

3. Hindustan Construction Company (HCC):
CMP: 98.2
Target: 100, 101.5 and 103
Stop Loss: 95
HCC bagged Rs. 735 crore irrigation tunnel work from Andhra Pradesh government.

4. Videocon:
CMP: 426.15
Target: 434
Stop Loss: 417
It plans to set up a LCD manufacturing unit in China.

5. Bharti Airtel: (High Risk with profit booking by investors)
CMP: 833.9
Target: 846
Stop Loss: 820
Bharti entered into Sri Lankan market. Its clash with Wal-Mart over brand usage may be dampener.

6. TVS Motors:
CMP: 62.2
Target: 63 and 64.2
Stop Loss: 61
TVS motors will launch new bike “Neo” in Indonesia.

7. Hindalco, Raymond and Moser Baer.

Indian Stock Markets on May 15, 2007

Indian Share Markets may fall in the initial trading session due to booking of profits by investors in stocks like SBI and Reliance Capital. BSE Sensex and NSE Nifty may range-bound after initial losses. Appreciation of rupee will spoil the fortunes of IT stocks.

Market Trend: Volatile/Bearish.

Warning News:

1. CAG slammed the IT department for under-assessing the income of Reliance Industries, Tata Motors and Bank of Baroda.

2. Rupee is appreciating again against dollar. Stay away from IT Stocks.

3. Asian markets are in bearish mood.

4. Indian ADRs suffered losses yesterday.

5. Copper price is in drastic down trend. Stay away from Hindalco and Sterlite.

Request for Medium/Long term investors:

1. Stay away from sugar stocks. It will take another 1 year to turnaround the fortunes of these companies. These Government sops will not remove the original problems of sugar industry.

Best Stock picks for Indian Day Traders:

1. Voltas:
CMP: 96.8
Target: 103
Stop Loss: 90
It posted 5-fold rise in Q4 profit while net sales rose by 38%.

2. Tech Mahindra:
CMP: 1530.9
Target: 1542 and 1558
Stop Loss: 1514
It announced alliance with Sun Microsystems to provide systems and software for IPTV services to customers in India and Asia pacific markets.

3. Network 18
CMP: 563
Target: 574
Stop Loss: 540
Reliance Capital acquired 5% stake in NW18.

4. Zee TV:
CMP: 284
Target: 287 and 290
Stop Loss: 280
It is very aggressive in forming alternate cricket league by including all time greats like Kapil Dev, Brian Lara and Glen McGrath.

5. Reliance communications will launch Blackberry in CDMA. Enter into this stock with some risk. You may enter this stock after initial losses.
CMP: 482.9
Target: 488
Stop Loss: 476

6. Granules India:
CMP:129
Target: 132 and 135
Stop Loss: 126.5
It received US FDA approvals for its 2 plants in Andhra Pradesh.

Negative News:

1. Stay away from Sun TV. Its battle with DMK government is getting murkier day by day.
2. Stay away from Thermax. Purolite of US files espionage suit against Thermax.
3. Stay away from Reliance Industries and Tata motor. CAG news may spoil the sentiment in these stocks.

Stock Markets are in the grip of operators

Indian Share markets are experiencing huge swings due to buying and selling by smart operators. Ordinary investors may have lost big money in these wild swings. Retail investors and day traders should tread cautiously in volatile times. Crude oil price rose again on supply concerns.

Market Movement: Bullish.

Warning News: Central banks may tighten liquidity. It is not a good sign for medium term investors.

Best Stock Picks for Day Traders:

1. JK Cement
274% jump in Q4 net profit. Net turnover was increased by 49%.

2. Shree Cement
CMP: 1037.7
Target: 1067
Stop Loss: 1007
It will announce good results today.

3. NTPC
CMP: 154.9
Target: 157
Stop Loss: 150

4. Novartis India

5. Lanco Infratech
CMP: 157.3
Target: 159.3 and 162
Stop Loss: 154

6. Reliance Communications
CMP: 478
Target: 486
Stop Loss: 458
It will likely get additional spectrum.

Positive News:

1. Inflation is under control.
2. Asian Markets are trading positively.
3. ONGC subsidiary Mangalore Refinery posted 41% jump in the last financial year.

Negative News:

1. Reliance Energy’s ambitious plans may be halted due to change of guard in Uttar Pradesh.
2. Stay away from Arvind mills.
3. ICICI Bank will be investigated by MRTPC for making false promises to its credit card customers.
4. Stay away from Hero Honda due to poor results.
5. Stay away from Dr Reddys due to American court ruling.

ICICI Direct stock of the Week:

Apollo Tyres

Economic Times Stocks of the Week:

1. Reliance Petro- Safe Bet.
2. SAIL- Somewhat risky.
3. Global Tele – Safe Bet.
4. Jain Irrigation – Long term bet.

Reliance Money stocks of the week:

1. Tech Mahindra
2. Polaris

Stocks for Medium term:

1. Philips Carbon Black
2. Pioneer Embroideries

10 Best Stock picks for Long term investors (1 year- 2 years):

1. Jyothi Structures
2. Alok Industries
3. Reliance Petro
4. Reliance Capital – Best stock for long term investors.
5. Larsen and Toubro
6. Idea Cellular
7. Reliance Communications
8. RNRL
9. Cipla – It is fundamentally strong stock.
10. Tata Tele

Enter into these 10 stocks at lower price:

1. Tata Motors – Growth story lies ahead.
2. Reliance Industries
3. ABB
4. BHEL
5. Kalpataru Power Transmission
6. Tata Steel
7. Bharti
8. HT Media
9. Shipping corporation of India
10. Tata Power

Please share your opinion on my stock picks.

Indian stock markets will crash on black Friday

Today is going to be black Friday for Indian equity investors. Negative triggers will propel Share Markets and investors into panic state. US economy growth concerns will add fuel to the fire. All the global markets and Asian markets suffered heavy losses.

Negative triggers:

1. US economy concerns. Growth may slow down.
2. Fall in Asian Markets and US markets. European shares fell yesterday.
3. Uttar Pradesh election results and Congress dismal performance.
4. All the Indian ADRs suffered heavy losses yesterday.
5. Increase in crude price.
6. Decrease in metal prices.

Significant Events:

1. Inflation rate. It may be around 5.7%
2. Teledata gained yesterday after the battering for the last 10 days. In my opinion, it is still a safe bet for long term investors.
3. Bajaj Auto to consider demerger on May 17.

Advice for Day Traders:

1. If any good stock suffers more than expected loss in early trade, trade in that stock to get good returns in the afternoon recovery.
2. Infosys may gain due to weakening rupee.

Best Stock picks for the Day Traders: (Invest at your own risk)

1. Asian Paints:
CMP: 782
Target: 791
Stop Loss: 770
Wonderful Q4 performance. Net profit trebled due to increase in sales. Sales rose almost 30% in Q4.

2. Moser Baer:
CMP: 372
Target: 379
Stop Loss: 364
It acquired rights for 700 movies.

3. Infosys:
CMP: 1974
Target: 1996
Stop Loss: 1955
Rise in Dollar against rupee.

4. Reliance Communication: (With high Risk)
CMP: 464
Target: 470
Stop Loss: 458
Reliance Communications sold 1 million handsets within one week of Rs. 777 mobile launch.

5. Maruti Udyog- Government sold its stake in Maruti.
6. Larsen& Toubro - It may bid for Bofors.
7. IT Stocks may gain due to rupee fall against Dollar

Stay Away from following stocks:

1. Today is black Friday. It is better to stay away from Indian share markets.
2. Metal Stocks: Copper fell on 3rd consecutive day.
3. Stay away from Finolex Cables. Worst results.
4. Stay away from Hero Honda.

Indian share Markets may range-bound

Indian share markets are continuing their volatile sessions. Stock Markets may range bound today due losses in the past trading sessions. Most of the stocks are seeing heavy selling/buying without any specific reason. Investors in these stocks may suffer the fate of Teledata investors. Oil refining stocks (BPCL, HPCL and IOC) may rise due to drop in crude prices.

NSE: 4111
Support: 4090 and 4070
Resistance: 4144 and 4178.

Warning News:

1. RBI may increase CRR but not Repo rates – JPMorgan.
2. Business confidence was down in Q4 – FICCI Survey.
3. RBI sent strong warning note to banks. Stay away from public sector bank stocks.
4. Copper price fell on ending of Peru strike and profit booking. Be careful with Hindalco and Sterlite.
5. Indian ADRs lost yesterday despite rise in DOW.

Stock Picks for Day Traders:

1. Reliance Capital
CMP: 742.9
Resistance: 757, 772 and 781.
Support: 734
Global investment firms eye stake in Reliance Capital. This is a best stock for Long term investors. It may touch 1200 within 2 years. Forget short term fluctuations in Reliance Capital.

2. Reliance Communications
CMP: 466.5
Resistance: 474 and 481
Support: 461

Stay away from following stocks:

1. Real estate stocks may see some selling due to DLF IPO clearance from SEBI.
2. Deccan Aviation will not sell stake to King Fisher.
3. Public sector bank stocks may lose heavily due to RBI letter.

Stock picks for Long term Investors:

1. Reliance Communications
Enter into this stock at 400-430 level. It has big plans for the future growth. It plans nationwide rollout of DTH and Metro IPTV. It will spend 2.5 billion US Dollar in network expansion.

2. Stay away from Auto and Real Estate stocks. Oversupply of office space is a concern.


Rupee impact on Stocks (Credit Suisse report):

1. Gainers: Engineering and Construction Stocks, Reliance Communications, Oil refining stocks like BPCL, HPCL, IOC, Container Corporation, HT Media, United Breweries, Sterlite, Titan, Zee, Exide and Adani Enterprises.

2. Losers: IT Stocks, Pharma Stocks, Hotel and Tourism Stocks and some oil stocks like Essar Oil.

Share your ideas on the movements of Indian stock markets.

Stock picks for Indian day traders

Indian Share markets may continue their bull run today due to decline in inflation rate (expected) and positive sentiment prevailing in the international markets. Only worry is marginal appreciation of rupee. Metal stocks may continue their bull run.

Significant News: Inflation may be down to 5.86%.

Global cues: Global markets are maintaining positive momentum. Asian markets rose due to decline in crude price and rise in metal prices.

Warning news of the Day:

1. The Finance Minister Mr P Chidambaram said policy measures would be intensified and supplies augmented to check the price line at the rate of 4.5 per cent.

2. Copper prices may fall about 30 percent by the end of the year as demand lags behind supply following a slowdown in the U.S. housing sector, according to the Commonwealth Bank of Australia – Bloomberg. But sentiment is bullish in the short term.

NSE Nifty: (4150.85)
Resistance – 4181 and 4211.
Support – 4100.6 and 4050.4

Best Stock Picks for Day Traders:

1. Gitanjali Gems (199.35)
Resistance – 206.5 and 213.6
Support – 195 and 190.8
Import duty on gems & jewellery has been completely abolished and duty on cut diamonds abolished.

2. Sesa Goa (1749.85)
Resistance – 1793 and 1836
Support – 1723 and 1696.
The export duty on iron ore finds has been slashed to 50%.

3. IFCI (46.7)
Resistance – 48, 49.3 and 50.3
Support – 45.7 and 44.7
Wonderful Results and stake selling news.

4. Colgate (351)
Resistance – 357.7, 364.4 and 369
Support – 346.4 and 341.7
Colgate Palmolive (India) will be reducing its capital by returning Rs 122.40 crore to shareholders, and reducing the face value of its shares from Rs 10 to Re 1.

5. Sterlite Industries (533.5)
Resistance – 538.5, 543.6 and 550.3
Support – 526.8 and 520
Sterlite Industries has announced its Q4FY07 results. The company posted jump of 40.7% in net profit at Rs 1,144 crore (Rs 11.44 billion) in fourth quarter as against Rs 813 crore (Rs 8.13 billion) in corresponding quarter of previous year.

6. ACC (852.3)
Resistance – 861.9 and 871.4
Support - 843.9
Reduction in duty and to pick up stake in Shiva cement.

7. Century Textiles (617.7)
Resistance – 626.6 and 635.6
Support – 611.8 and 606
Century Textiles has declared its Q4FY07 results. The company has registered net profit of Rs 94 crore (Rs 940 million) versus Rs 25 crore (Rs 250 million) in same period of last year.
Century Textiles board approves setting up 100 tonnes per day prime grade tissue paper plant for Rs 175 cr

8. Reliance Communications (471.75)
Resistance – 484 and 496
Support - 464 and 457
Reliance communications is in expansion mode.

9. Jet Airways (722)
Resistance – 737.6, 753.2 and 763.5
Support - 711 and 701

10. Eid parry India (122.7)
Resistance – 124 and 125.3
Support - 120.6 and 118.6

Stock news for Investors:

1. Jet Airways has chosen Brussels as its international hub.
2. Stay away from Reliance Industries and RNRL. Court halted RIL’s KG Basin sales.
3. Stay away from IT stocks – My intuition.
4. Stay away from Eicher Motors and United Phosphorus due to poor results.
5. Idea cellular to merge its 8 subsidiaries.

Results today:

1. Hindalco (145.9)
Resistance – 148 and 150.2
Support - 142=4.2 and 142.5

2. Gujrat state fertilizers (179.3)
Resistance – 181.5 and 184.4
Support - 177.8 and 176.4

3. Ashok Leyland and EID Parry

Indian Stock Markets may follow global markets

Indian Stock Markets may follow the global counterparts. Markets may start in positive mood due to positive news from global markets. All the global markets are in positive breadth. Crude is at $64 and rupee is steady.

Tip of the Month: As per research, investors generally sell in May and enter into markets in November. Earnings are generally low in May-November period.

Daily Stock picks for Day Traders:

1. Moser Baer – (355.85)

Resistance – 364 and 372
Support – 342 and 328
Moser Baer reporting increase in net profit to Rs 39.72 crore for the last quarter ended March 31. This is against Rs 35 lakh for the corresponding previous period.

2. Apollo Tyres – (315.9).

Resistanace is at – 326.78 and 337.67
Support is at – 298 and 280.

Apollo Tyres Ltd said its board had approved a move to split each of its share into 10. Apollo Tyres reported net profit of Rs 42.71 crore in Q4 versus Rs 26.38 crore in comparable period.

3. Reliance Petro – (80.95)

Resistance – 81.7, 82.4 and 83.4
Support – 80 and 79

4. Suzlon Energy – (1187.5)

Resistance – 1210 and 1233.
Support – 1162 and 1137.

Suzlon Energy bags contact to supply wind turbines of 400 MW capacity to US Based PPM energy.

5. IBP – (441.4)

Resistance – 448.6 and 455.8
Support – 434.6 and 427.8

6. Tata Chemicals – (217.95)

Resiastance – 220.4, 222.98 and 225. 97
Support – 214.9 and 211.9

7. Deccan Aviation – (104)

Resistance – 106.6 and 109.2
Support – 102 and 101.

Company Results:

Following companies will announce results today. Closely follow these stocks today and Day Traders should invest immediately if these companies announce good results. Speed of execution is crucial.

1. Eicher Motors – (270.75)
Resistance – 276, 281 and 287.
Support – 264 and 258.

2. Aditya Birla Nuvo – (1147.45)
Resistance – 1159.9, 1172.35 and 1189.8
Support – 1130 and 1112.

3. IFCI – (44.75)
Resistance– 46.9 and 49.
Support– 41 and 38.

4. Kansai nerolac – (718.75)
Resistance – 733 and 748.
Support – 709 and 700.

5. Orchid Chemicals – (258.4)
Resistance – 266.9 and 275.4
Support – 253 and 247.6

6. HDFC – (1666.35)
Resistance – 1696 and 1722
Support – 1633 and 1600

7. Varun Shipping – (60.4)
Resistance – 66 and 72
Support – 56 and 52

8. United Phosphorous Ltd. – (330.55)
Resistance – 342.9 and 355.3
Support – 320 and 309.6


Positive news for Day Traders:

1. Tech Mahindra was ranked as one of the top 10 leaders in Global outsourcing business.
2. Maruti car sales rose again in April after a dip in March.
3. Hero Honda sales rose in April.
4. Usher Agro net profit jumps 233% for Q3.
5. Tata Sons consolidated its stake in Tata Tea.
6. Steel companies may raise prices.
7. The Union Ministry of Company Affairs has approved the merger of IBP Ltd with IOC.
8. Tata chemicals is in massive expansion plan.

Negative News for Stock Investors:

1. Stay away from Gayatri projects due to its poor results.
2. Tata Motors commercial vehicle sales fell in April but total sales rose around 11%.
3. TVS Motors sales down in April.
4. I-Flex technologies results are not impressive.

Indian Stock Markets are shining

Indian Stock Markets are attaining new peaks as bulls are dominating the markets. Reserve Bank of India fuelled the market mood by not changing the interest rates in its annual credit policy. Bulls will dominate the markets in this whole week. Day Traders may gain profit by investing in rising stocks. Long term investors should stay away from Indian stock markets in these volatile times especially from blue chip stocks and banking stocks.

Breaking News: Dollar falls below 41 mark against rupee. Stay away from IT Stocks.

Observation of the day: Reserve Bank of India changed the inflation target from 5.5% to 5%. So, don’t take long term positions in banking and finance shares.

Global Markets: No significant clues are available from global stock markets.

Stocks of the day:
Banking and Auto shares may rise due to positive sentiment prevailing in these sectors (RBI policy).

IT stocks may lose heavily.

Positive news for Day traders:

1. Wockhardt Ltd. has received approval from the US Food and Drug Administration to sell lisinopril, which is used to treat high blood pressure and heart disease.

2. HDFC posted impressive Q4 results. It is the stock of the day.

3. Elder Pharma may gain slightly.

4. Bajaj Hindustan may rise again due to export subsidies and 3 new plants.

5. Indian oil companies may gain from price hike.

6. Reliance Energy will gain due to power tariff rise.

7. Jubliant Organosys to buy US based Hollister-Stier Labs.

Negative news for Day traders:

1. Rupee is continuously appreciating against Dollar. So, stay away from IT Stocks and Exports based stocks.
2. Stay away from MTNL. Its ADR lost around 7%.

Results today:

1. Grasim, Dena Bank, Idea Cellular, Glenmark, Patni, Godrej Conjumers, Reliance petro, RNRL, Mahindra Gesco and SRF.

Happy Trading! Never change stop loss and target without specific reason.

Black Tuesday-Stay away from Indian Stock markets

Indian stock markets may lose heavily due to RBI measures to tighten inflation, bad news from global markets and unrealistic surge in the past 7 trading sessions. Black Mondays are common in Stock markets, but black Tuesdays are rare. Today we will see heavy selling from panic investors. Markets may lose around 400 points today. Day traders should stay away from markets today. Long term investors may buy some good stocks at low valuations in the afternoon session like Idea cellular.

News of the Day: The Reserve Bank said year-on- year inflation was higher at 5.7 per cent at the end of fiscal 2006-07, indicating more measures to tighten its credit policy to be announced on Tuesday.

Ceat and Bhrat Shipyard may gain today due to unexpected losses yesteraday.

Global Markets: All the global markets suffered heavy losses. This is a bad news for the Indian markets also. Indian ADRs were also suffered yesterday.

Positive news:

1. Idea cellular is on track to touch one billion dollar mark. This is a stock for medium-long term investors.
2. Matsushita Electric Works (MEW) of Japan, owners of the National and Panasonic brands, has acquired 80 per cent equity stake in the privately held Anchor Electricals for Rs 2,000 crore.
3. Adlabs Films is entering into distribution of non-Indian movies.
4. TATA Motors is launching "ACE" into Nepal market.

Bank stocks, Auto Stocks and construction stocks may available at low values in the coming weeks.

Stock market guide for Indian investors – April 16, 2007-04-13

Today is another wonderful day for Indian stock Market investors especially for day traders.
Stock Market movement: Markets will move upwards and may gain around 250-300 points.
Resistance – 13,580 and 13,640

Most positive news: Inflation is moving downwards and RBI may not raise interest rates.

Global Cues: US markets moved upwards on Friday. Asian markets are on recovery mode.

Negative News for IT stocks: The Indian rupee closed at its strongest level against the dollar in eight years.

Investment Strategy for Day Traders:

Pick good small/mid cap stocks (Based on results) - They will give maximum profits in these highly volatile times.

TCS, Teledata and Aventis Pharma will announce results today. Tata Consultancy Services (TCS) has reportedly clinched a 100 million dollar deal spread over five years from Bank of China.

Stocks for Indian Stock Market Day Traders:

Kavveri Telecom announced superb Q4 results.

Canara Bank may acquire Dena Bank.

Work at two-wheeler manufacturer LML's unit here will restart from tomorrow.

SAIL: The government has allotted a coking coal block to Steel Authority of India Ltd.

CMC announced 80% dividend. It is a must buy stock for day traders.

Gujarat NRE Coke Ltd (GNCL) will be setting up three power plants.
The company signed an agreement with Sailcon, a division of Steel Authority of India Ltd (SAIL), for the setting of the power plants.

Essar is to buy Canadian Steelmaker Algoma in an all cash deal worth C$1.85bn.

ITC Ltd, the country's biggest cigarette maker, plans to invest about Rs 15,000 crore in the next 5-7 years. ITC share may gain around 2-3 rupees.

Apollo Tyres rolled out dura tyre.

Rakesh Jhunjhunwala and persons acting in concert with him have bought 50,000 shares of Titan Industries on April 12 via market purchase.

Voltas announced that it has clocked a growth of over 30% in sales of its room air conditioner business.

Triton Corp has reported 19.16% increase in respect of net profit amounted to Rs 3.98 crore in the quarter ended March 2007 as against Rs 3.34 crore during the quarter ended March 2006.

Educomp Solutions Company is into overseas foray.

Infrastructure major Hindustan Construction Company Ltd (HCC) plans to enter the real estate business with an initial investment of Rs 1,000 crore.

Closely watch Sterilite and Hindalco.

Surprising Stocks:

Hero Honda, Aventis Pharma and Dr Reddys- may gain after some battering in the last 2-3 days.

Avoid these stocks:

National Pharmaceutical Pricing Authority (NPPA) has asked Cipla, the second biggest domestic drug maker, to pay Rs 748.27 crore as fine towards overcharging of controlled drugs.
RBI stopped FII buying in India Bulls Real estate.
Abbot Ltd sued Ranbaxy.
Stay away from sugar stocks due to rise in production and drop in sugar rates at New York commodity exchange.
Sesa Goa receives show cause notice from Jharkhand Government.

Day traders guide for Indian Stock market – April 12, 2007

Today is going to be another worst day for markets. BSE Sensex and NSE Nifty may lose heavily due to bad news from global markets and warnings from RBI and IMF. Markets may lose around 200 points.

IMF and RBI issued warnings to the investors about the effects of rising inflation and rapid credit growth. As per IMF report, investors may not be giving sufficient weight to downside risks leaving markets vulnerable to the possibility of a shock. The risks are being amplified by the increased linkages across financial products and markets

Statement of the Day: Inflation may touch 7% - RBI Governor.
News of the day: The International Monetary Fund (IMF) has forecast that Indian economy will grow at 7.8 per cent in 2008.

Global Markets:

Global markets lost heavily due to concerns about rate hike, rising inflation and slow down in US economy. Japanese market is the worst sufferer. All the Indian ADRs lost marginally.
Crude oil price: It rises due to unexpected decline in Gasoline supply.

IFCI and TCS will rise while Sesa Goa will lose.

Stocks for Day traders:

Ranbaxy and GAIL are some positives stocks.
Reliance Capital entered into online trading through flat fee structure.
Pantaloon and ITC tie up for food segment.
Ballarpur industries will announce results today.
Reliance Communication and Sun TV ink pact for mobile content.
Blue Dart plans to spend Rs 220 million in South.

Stocks to be avoided today:

Exports of textile products to the US were declined by over 3% in dollar terms during January 2007, as compared to the corresponding month a year ago.
Stay away from Idea and Bharti Airtel due to decrease in subscriber additions.
Car sales hit 13 month low – Stay away from Maruti.
Novartis may stop further investments in India.
Gujarat Ambuja Cements Ltd’s (Rs.107.85, Sell) March shipments have fallen by 4.5%.

Indian Day Trader’s Guide – April 10, 2007

Indian stock markets may lose around 100-200 points due to heavy selling in IT stocks and unreasonable rise on Monday. I can’t understand why some investors are madly buying IT stocks on Monday. Are there in right frame of mind?

Global Cues: Rupee appreciated against Dollar and Euro. Stay away from IT shares and export dependent company stocks. Asian markets are spiralling downwards.

Watching Point:

Bank of Japan’s decision on interest rate. Except Hong-Kong market, all other Asian markets lost around 0.5%.

Daily Stock picks for Day Traders:

1. Sesa Goa: As per reports, Mittal’s bid for Sesa Goa is around Rs 2,200 per share. This share may rise around 30-60. It’s power plant gets UNFCCC approval for carbon credits
2. Sun TV: Obtained stay against TDSAT directive on channel sharing.
3. NDTV: Interest of private equity investors raised the valuation of this media giant. It may apply for an IPO in the US or UK.
4. Pantaloon: It is leasing its properties to Reliance retail, Shopper’s STOP, Trent and Life style.
5. Jet Airlines: Out of court settlement.
6. Lanco bags order from DVC.

Exit /Stay away from following stocks:
1. IT Stocks: All are bad news. You will see heavy selling in IT counters. Rupee appreciation, mad rise on Monday, Service tax on leased and rented premises, Lowered expectations on future growth prospects may spell doom for IT Shares.
2. Sugar Stocks: Sugar prices will lower on weak domestic demand and increased sugarcane production worldwide. Wait for the completion of UP elections before buying these stocks.
Request for Short-term Indian Stock market Investors:
Stay away from IT Shares, Banking Stocks, Auto Stocks and Real Estate shares.
Please comment on this article.