IT stocks will hog limelight

It is a golden day for Export Companies but dooms day for many companies. FII selling pressure will gradually impact market in the short term. Will mutual funds and domestic buyers save the market? Markets are at crucial stage and I will closely watch the FII inflow and out flow. Rupee appreciation will be halted against dollar. Major boost for export companies like IT, Textile etc.

Global markets: US Markets ended on positive note after the intra-day volatility. But FIIs will spoil Indian Markets by moving funds from Indian markets to US markets due to dollar appreciation. Lack of liquidity is a concern. Falling crude oil price is the positive cue from global markets.

Market movements: If investors immediately understand the impact of ECB tightening, it will be a sharp fall. If investors temporarily buoyed by IT stocks rise, markets may sustain for some more time.


Sector of the day: IT Sector. 5-10% gains may be possible for these battered stocks.

Stock of the Day: Infosys.

Significant News:

1. No change in fed interest rates. Inflation is a real concern.
2. Fresh restrictions on External Commercial borrowings (ECB). Maximum limit is $ 20 million for rupee.
3. More sops for exporters by this month end. Accumulate these laggards.

Positive Stock news:

1. City Union Bank announced stock split in 1:10 ratio.
2. TTML, Bharti Airtel and R-Com are in race for 51% stake in Kenya Telkom.
3. Telecom companies will get tax benefits due to tower sharing.
4. Take Solutions IPO oversubscribed 59.4% times but retail portion got 23% over subscription.
5. Great Offshore will buy a Scandinavian company for $ 500 million.
6. ICICI Bank cuts deposit rates by 25-50 bps.
7. Punj Lloyd will place a QIP for $ 400 million.
8. India is now the 5th largest crude steel producer.

Negative Stock News:

1. Left Parties blocked Indo-US Nuclear deal.
2. Due to tightening of ECB norms, Companies will have to pay extra money for loans.
3. Falling crude is a positive sign while dollar appreciation is a negative signal for oil marketing companies.

Stock Recommendations for Day Traders:

1. City Union Bank:
CMP: 237.
Target: 242.

2. Infosys:
CMP: 1878.
Target: 1930.

3. Satyam:
CMP: 463.
Target: 478.

4. TCS:
CMP: 1109.
Target: 1140.

5. IFCI: If it breaks 68 resistance.

Please share your views and stock recommendations.

Can Infosys save Stock market correction?

Infosys will announce Q1 results today against negative sentiment surrounding global markets. Can Infosys save Indian markets by giving positive guidance? US market Dow Zones lost 148 points against mortgage and earning concerns. Most of the Asian markets are trading in the negative zone and crude is moving above $73. Indian stocks are on the verge of a major correction due to these negative triggers. If Infosys gives positive guidance, markets will be saved from major correction (partially). If Infosys gives negative guidance, BSE Sensex will lose around 250-300 points.

Global cues: Negative sentiment surrounded global markets.

Sector of the day: IT Stocks.

Stock of the day: Infosys Technologies.

Rumour of the day:

1. Prajay Engineers Syndicate – Good results and Bonus rumours.
2. KS oils – safe bet for medium term. Stock split may up the stock.

Events of the day:

1. Infosys results. Infosys guidance more than results will change the fortunes of IT companies. My opinion is Infosys may miss the target. In the current financial year, rupee appreciated against dollar, Pound and Euro by 5-8%.

2. Rupee may touch 9-year high against dollar today.

3. Everonn IPO will end today. Allotment will be very low.

Positive stock news:

1. Tatas will pickup stake in DCB.
2. HDFC Bank posted 34% rise in net profit. It may bounce back.
3. Blackstone may pickup stake in Nagarjuna Construction.
4. Reliance Energy is on massive expansion plans.
5. PTC will pickup stake in Indian energy exchange.
6. IFC picked up 3.5% stake in Max healthcare.

Negative stock news:

1. Dublin high-court gave ruling in favour of Pfizer. Problem for Ranbaxy.
2. Suzlon will continue to fall on the back of negative news (IPO Money).

Best stocks for day traders and investors:

1. DCB:
2. Nagarjuna Construction.

Stock advice:

1. Stay away from markets. If Infosys gives positive guidance, take long positions in IT stocks.

Please share your opinion on my stock recommendations and give your stock ideas.

Infosys results are crucial to market movement

Indian stock markets are showing exceptional strength even at 15000 levels. Infosys results will be crucial if markets if markets have to sustain these levels. Inflation data on Friday is another crucial mark along with International crude prices. I booked profits in blue chips and am still holding IFCI and Ispat. I made fresh investments in Fortis with 2 year horizon. I took short term bets on Dr Reddys and Reliance Communications.

Global cues: US markets rose on account of earnings growth.

Sector of the day: IT stocks as Infosys will announce results tomorrow. Will Infosys surprise us again?

Stock of the day: Tata Motors – 1 lakh car will be rolled out according to schedule.

Positive stock news:

1. Dishman Pharma will acquire vitamin and fine chemicals business of Solvay Pharma.
2. Wockhardt got tentative approval for Fosphenytoin injections.
3. IDBI will sell stake in state finance corporations.
4. DCM Shriram will sell stake in Hariyali Kisan.
5. Tata Motors will list its profit making subsidiaries like TDCV and TELCON.
6. Divis Labs announced stock split from Rs 10 to Rs 2. It is the first stock to undergo heavy correction if markets see correction. Invest only on dips.
7. Sugar stocks will see some gains in the coming days on account of govt. Subsidies (will be announced). Long term outlook is looking dismal for this sector.
8. Hindustan zinc will increase capacity on massive scale. Sterlite may buy some stake in this stock.

Negative stock news:

1. Q1 earnings of major IT companies will decline by 10%. Wednesday is the D-day for IT stocks.
2. Auto companies will announce disappointing results.

Stock advice:

1. Lanco Infra will continue its positive momentum in short term.
2. Reliance Communications may bounce back today.
3. Bonus rumours are surrounding NTPC and HUL.
4. Tata Tea is a safe bet for medium term investors.
5. Raymond is looking as safe bet for long term investors.
6. Bharti Shipyard and Areva T&D are good long stocks.

Note: Markets will crash at any time. Caution advised.

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 Stock market guide – April 13, 2007

Indian stock market investors will have very good opportunities in some shares today. Markets will gain around 100-150 points today. Invest in shares which lost heavily in the past 2 days like Ranbaxy Laboratories.

Infosys technologies will announce results in Bangalore today. Its forecast about the growth of IT industry will change the fortunes of IT stocks. Stay away from IT stocks.

Global cues:

US markets and most of the Asian markets gained some of their lost ground. Indian ADRs turned positive. Oil prices rise due to decline in US gas stocks.

News of the Day:

The Index of Industrial Production (IIP) registered an 11 per cent growth during February 2007 as against 8.8 per cent in the same month last year. For April-February 2006-07, IIP improved by 11.1 per cent as against 8.1 per cent in the same period last fiscal.

The manufacturing sector improved by 12.3 per cent in February compared to 9.2 per cent in the same month of 2006. For the April-February period, manufacturing grew by 12.1 per cent as against 9.1 per cent in the corresponding period last fiscal.

Stocks for Indian Day Traders:

1. Rallis India – Superb Q4 results.

Net profit of Rallis India rose 218.57% to Rs 9.78 crore during the quarter ended March 2007 as against Rs 3.07 crore in the previous quarter ended March 2006. It will gain 10-20 points.

2. Ranbaxy – Approvals to market its drugs in US and Canada markets.

RANBAXY RECEIVES APPROVAL TO MARKET CEFPROZIL TABLETS AND CEFPROZIL POWDER FOR ORAL SUSPENSION IN CANADA.


Ranbaxy Laboratories Ltd said it got US Food and Drug Administration approval to market Loratadine antihistamine tablets.

3. ICRA debuts today

It will be listed on the Bombay stock exchange in the ``B1`` group of securities.
The company offered 2,581,100 equity shares of Rs 10 each at a price band between Rs 275 and Rs 330 a share. The cut-off price was fixed at Rs 330 a share.

4. ITC:

Seven ITC hotels will be upgraded to be a part of the 64 premium properties worldwide that are recognised under the `Luxury Collection' brand.

5. Ballarpur Industries Ltd (BILT):
An increase of 21.85 per cent in its net profit for the third quarter ended March 31, 2007, to Rs 64 crore from Rs 52.52 crore in the corresponding period last year.

6. Reliance Communications:
It bagged majority of the Universal Services Obligation (USO) fund-sponsored rural cellular project.

7. Ruchi Soya:
Ruchi group buys palm oil business of Sical Logistics for undisclosed amount

8. Pantaloon Retail:
March sales up 84% at Rs 264 cr

9. SAIL:
It closes to acquire Malvika Steel

10. Alembic:
It undertake expansion worth 100 mn.

Stay away from following stocks:

1. Copper prices are in decline. Stay away from metal stocks.
2. TATA Power

Indian stock market guide for Investors - April 9, 2007

Indian stock markets are entering into another uncertain week ahead of Infosys results and famous forecast. But, on Monday, Indian shares gain due to positive news from International and Asian markets. Decrease in crude oil price and Rise in Asian markets are positive news. Most of the companies may declare good profits in their financial results.Infy may give less than expected growth projections which will spoil the sentiments of markets and investors.

Stocks for Day Traders:

Lupin - Selling Hypertensive drug patent.
Ranbaxy – Picks up stake in Jupiter bioscience and Profits from Africa.
Gujarat NRE Coke - Due to spectacular Q4 results.
SRF-Raising 500 Crore from Carbon credit.
Tata Power and Reliance - Got permission to hike power tariff in Mumbai.

Investors should stay away from following sectors and stocks:

1. Bank stocks and Auto stocks – I can’t understand why some investors are still buying these stocks?
2. Reliance share may lose some sheen due to Government decision to limit the size of SEZs to 5,000 acre.
3. Real estate stocks will be undervalued due to loss of investor’s interest and government’s restrictions.
4. Fears of Rupee appreciation against dollar is not a good option to enter into IT stocks.
5. NTPC -Due to lacklustre results.
6. Jet airways - Court hearing.

Investment strategy for day traders (April 4, 2007)

Indian Stock market outlook for Wednesday:

This is going to be one of the good days for Day traders. Markets will gain at least 200-250 points.

Global Markets:

All the global markets rose substantially. Indian markets will respond in the same manner.

Stocks for Day Traders:

Indian Hotels, Zee, Orchid Chemicals and Ranbaxy. Day traders can bet big on Orchid Chemicals.

Advice for Long term Investors:

Sell ‘Infosys’ shares – It will announce less than favourable future growth.
Stay away from Real Estate, Banking, Consumer Finance and Auto shares. I can’t understand why investors bought these stocks on Tuesday.

Stocks for Long term Investors:

Ashok Leyland and Finolex Cables.

Please share your idea.

Indian Business Marvels

Indian Business Wonders

A young engineer starts of a world class company which makes even peons rich

- Narayana Murthy of Infosys.

A small timer from meerut moves to Mumbai and builds an airline empire

- Naresh Goyal of Jet Airways

A cycle parts trader from Ludhiana takes phones out of the house and puts them in the hands of plumbers and fruit vendors - Sunil Mittal of Bharti Airtel

The son of a school teacher created petroleum giant - Dhirubhai Ambani of Reliance.

Source : Times of India