Markets are in negative zone

Indian stock markets are in the crucial period with slow down in US economy, rising crude price and appreciation of rupee against dollar will make markets continue to spiral downwards. Market operators may try to give positive edge but that is not sustainable. Stay away from markets until these wild moments stopped.

Market moments: Bearish.
NSE Nifty may trade in the range of 4095- 4120 while BSE Sensex may trade in the range 13,920-14,050.

Significant news:
1. ICICI Bank FPO opens today.

Stock Investment advice:
1. Stay away from IT, BPO and Textile stocks as rupee will continue to appreciate.
2. Stay away from Banking and Automotive stocks as rate hike is necessary.
3. Don’t believe in the ambitious statements by Textile minister. Even though volumes may rise, margins will suffer.

Positive Stock News:

1. Wipro will acquire IT arm of a major German company.
2. Reliance Communications will form JV with Accenture to maintain IT Infrastructure and services.
3. BHEL bagged Rs 139 crore order from NTPC.
4. Shareholders of Indoco remedies agreed merger proposal.
5. TRF and HCL got big orders.

Negative stock news:

1. Spicejet denied stake sale. But I believe in the rumours. Consolidation is healthy for Aviation industry.
2. Punjab National Bank dropped equity offer plan.
3. Oil price is at 9 year high. No hike in petrol and Diesel prices in India. Stay away from oil refining companies.
4. ABG Shipyard failed to announce inspiring results.

Results today:
SREI Infrastructure, Cambridge Solutions and Indian hotels.
I am advising investors to stay away from these extremely volatile markets for some more time. I will recommend any stocks.

Indian stocks will open on positive note

Indian stock markets will open on positive note on Monday due to rise in global markets. But Overall sentiment is bad but this range bound volatility will continue for some more time. Rupee will continue its march between 40.4-41.2 against dollar. If CBDT circular will spoil the whole sentiment, Nifty will touch 3600-3700 by Friday.

Major concern: Liquidity. Will markets face liquidity crunch after ICICI Bank issue?

Market sentiment: BSE Sensex may move between 14,100-14,300. Nifty will oscillate in the range 4,190-4,230.

Dangerous news:

1. Will US federal bank rise interest rates on June 28?
2. Crude is at 9 month high.
3. Rupee appreciation against dollar.
4. CBDT issue on share taxation is a big worry.

Significant stock news:

1. ICICI Bank fixed price band for its FPO at Rs 885-950.
2. Government may increase FII investment in oil PSUs from current 23% to 49%.

My stock for Long term investors:

1. EID Parry: Mutual funds have started accumulating this stock at low prices. Duration 1-2 years.
2. Long term investors should stay away from IT and Textile stocks and shares of companies whose business is mainly depended on US exports.
3. Weakness in dollar will continue against international currencies coupled with slow down in US economic growth will leads to major correction in International stock markets.
4. It is better for cautious long term investors to stay away from the markets until this volatility is over.

Positive stock news:

1. Kingfisher joined the race to acquire SpiceJet.
2. Aurobindo Pharma received US FDA approval for Tralandopril.
3. BHP Billiton may buy 51% stake in Ashapura Minichem’s Aluminium project in Orissa.
4. Cranes Software will buy Proland Software.
5. Indiabulls tied up with Europe’s Strabag SE.
6. NTPC is in race to set up power exchange.

Negative news:

1. Hindalco and Nalco slashed Aluminium prices.
2. Unsatisfactory progress of monsoons.
3. Oil prices are in upswing.
4. Hindalco will see selling pressure.


Best stock picks for day traders and investors:

1. BEML:
2. Sparsh BPO: Stake sale.
3. Orchid Chemicals: It may bounce back.
4. Aurobindo Pharma: US FDA approval.
5. Ashapura Minichem: Stake sale.
6. Dewan Housing and S Kumars nation: Positive momentum.
7. Royal Orchid hotels.
8. Mahindra&Mahindra: New Scorpio launch.

Please share your views on my stock analysis.

Business world issue on India’s most respected companies

Business world magazine has released special issue on India’s most respected companies. Investors should read this magazine as it gives an idea about the various companies from insiders.
Most respected companies:

1. Automobiles – Maruti Udyog, Tata Motors
2. Auto Ancillaries – MRF, Bharat Forge
3. Banking – ICICI Bank, Citibank
4. BPO – IBM Daksh, Infosys BPO
5. Consumer durables – Nokia, LG
6. FMCG – HLL, Britannia
7. Food Retail – Mc Donald’s, Café Coffee Day
8. Infrastructure – Tata Steel, L&T
9. Insurance – LIC, ICICI Prudential Life Insurance
10. Information technology – Infosys, Microsoft India
11. Media & Entertainment – NDTV, Bennett, Colemon & Co
12. Petroleum – Castrol, HPCL
13. Pharma – Ranbaxy, Cipla
14. Retail – Shopper’s Stop, Reliance Retail
15. Telecom – Bharti Airtel, Reliance Infocomm
16. Textiles – Raymond, Arvind Mills
17. Travel – Indian hotels, ITC Hotels

Long term investors may invest in the following companies:

Apollo Tyres, Castrol, Cipla,
Dabur India, TATA Teleservices

NDTV, Arvind Mills, Ranbaxy
Indian Hotels and TATA Motors.

Shares like Arvind Mills are quoting at attractive prices.

Most respected companies list provides an insight into what is happening in corporate India. These companies are rated high by the insiders. It is a measure of their credibility which is vital for the long term growth of the companies.

Magazine highlighted the fact that these companies will find it easy to hire the best talent. Their customers feel secure buying their products; their employees feel proud working for them. These attributes are necessary for the growth of any company.

Read more.

Investment strategy for black Monday (April 2, 2007)

BSE SENSEX will lose around 300-500 points on black Monday (1-4-207) as Reserve Bank of India raised Repo rate and CRR. Though global cues are not that bad, market will crash due to heavy selling in select stocks from panic Investors. India Stock Markets will see correction in this week. Investors should monitor their investments carefully.

Investment strategy:

Exit from Banking, Auto, Construction and FMCG stocks as they rely heavily on consumption power of people which will be decreased due to RBI measures. Bank shares will be worst affected.

Stocks for Day Traders:

Tata Power, Moser Baer.

Advice for long term Investors:

Enter into select mid cap stocks on Monday evening as they will be available for attractive prices. Exit from blue chip stocks like ICICI Bank, SBI and Reliance Industries. In my opinion, Mid-cap shares may give high returns in this financial year.

Conclusion:

Market movements in this week will decide the future direction of Indices. Failure to control the inflation despite corrective measures of RBI and Government is a major conern.

Don’t get panic. Wait for opportunities. Never follow the mob.