Indian stocks will lose in the early session

Investors will book profits in the initial trading. Markets may recover partially in the mid and late session. Day traders may play with Idea, IFCI, RNRL and RPL in the afternoon session. Long term investors may enter into good Pharma stocks after correction. Book profits in India Infoline and Cipla.

Market sentiment: Bearish and Volatile.

Negative Triggers:

1. Expiry of derivative contracts.
2. Govermnet’s target for inflation is 4-4.5%.
3. Investors will book profits in the early session.
4. Asian markets are in the negative zone. Bad sentiment in the Chinese markets.
5. Rupee appreciation against dollar.
6. Prime minister is against gas based power projects.

Positive Triggers:

1. Indian ADRs gained significantly despite marginal gains in the US Stocks.
2. Prime Minister wants to spend Rs 25,000 crore in Agricultural sector.
3. National Stock Exchange (NSE) will introduce Futures and Options trading in CNX Nifty Junior and CNX 100 from June 1.
4. Vodafone is planning to invest Rs 8,000 crore in India.

New Listings:

Mc Dowel Holding, MIC Electronics and Insecticides India.

Stock picks for long term investors:

1. Hotel Leela and Indian hotels: These stocks will capitalize boom in the tourism sector in the coming years.
2. Tata Tele services: Good and safe bet for long term investors.
3. EID Parry: Ideal stock for high risk taking long term investors. It is near 1 year low.
4. Patni computers is the best stock if rupee weakens against dollar.

Hot stock recommendations for Day trading:

Advice: Be cautious in the early trade. Markets may lose in the early session due to bad sentiment in the Asian markets.

1. Ranbaxy:
CMP: 391
Target: 395
Stop Loss: 386
It won case against Pfizer.

2. NTPC:
CMP: 160.7
Target: 162
Stop Loss: 158.5
NTPC will take over700 MW power plant in Assam.

3. Zee:
CMP: 312.8
Target: 317.5
Stop loss: 308

4. Ansal Properties and Gayatri projects.

5. Aurobindo Pharma:
CMP: 695.7
Target: 698
Stop loss: 693
US FDA approval.

6. Bharti Airtel: (With Risk)

Stocks to watch out:

L & T, BHEL, Britannia, Tata Power, Tata Chemicals, Crompton greeves and Welspun.
Be cautious in the early session and enter into good stocks to book profits after initial correction.

Share your opinion on my stock recommendations.