Correction will continue in June due to IPOs

Markets are in the dangerous territory. DLF and ICICI IPOs will suck big amounts from markets in June. Stock markets will continue to trade in this volatile zone for another 20-30 days. If investors accumulate money, they can buy some good stocks at attractive valuations. This is the only happy news in this month. Sometimes correction is also good. Newly entered traders and investors will suffer heavy losses in this whole episode.

Dangerous news:
1. Rupee may fall below 40.50 Vs dollar on the account of increased inflows due to big IPOs.

Most significant news:

1. Slow down in the growth of coal, cement and steel sectors in the first month of current financial year.
2. Petroleum refinery and power sectors showed improvement in growth.
3. Closely watch Berger paints stock as it will announce results today.

Positive stock news:

1. Jammu & Kashmir bank is planning to list in foreign markets.
2. Reliance capital is planning to enter into i-banking.
3. Reliance gas price bids may get clearance from government shortly.
4. Strides Arco labs acquired Grandix Pharma for 100 crore.
5. Hero Honda motors will enter into 4-wheeler components business.
6. Ispat group will invest $3 billion in Bangladesh.
7. GV Films will buy 10% stake in animation company “Sanara”.
8. Yashraj films will tie up with Disney to produce animation films.
9. Yashraj films may form JV with Blackstone group to enter into exhibition business.

Negative Stock News:

1. 10% price correction in the last 6 months in housing sector.
2. Courier companies stocks will suffer heavy losses due to 40% decrease in speed post charges.
Stock advice:
1. Buy Idea, RPL, RNRL and Zee Tele on declines.

Stocks to watch out:

Patni Computers, Jammu Kashmir bank, Berger paints and Reliance.

Note: I will not publish my daily recommendations until June 14 due to busy personal work.
Happy trading.

Do you believe in research reports by Stock Analysts?

Outlook Business published a very good article on stock recommendations and research reports by equity analysts. The article raised an interesting point on how leading research stock advisors misguided investors in the Jet Airways IPO. The article listed 39 stock recommendations by leading research houses where innocent investors suffered heavy losses. It is a must read article for every investor.

How to identify best stock recommendations?

My Advice: Read and Listen their advice. Do your own research before entering into that stock. Retail investor is the last person to hear about their recommendations.

Business Today magazine conducted a poll to select best equity analysts in India. It is somewhat better to believe in their stock picks.

SSKI emerged as the leading stock research house in India followed by Kotak Securities.

Best Equity analysts in India:

1. Sanjeev Prasad – Kotak Securities
Sectors: Media, Oil & Gas, Telecom and Chemicals.

2. Shirish Rane – SSKI Securities
Sectors: Cement, Power, Construction and Real Estate.

3. Jesal Shah – JP Morgan
Sectors: Pharma.
Best analyst in the Pharma sector with 13 years experience.

4. Manish Saxena – Deutsche Securities
Sectors: Capital Goods, Cement and Utilities.

5. Prabhat Awasthi – BRICS Securities
Sectors: Media and Auto.

6. Priyanko Panja – Edelweiss Securities
Sectors: Capital Goods, Construction and Telecom.

7. Rahul Singh – City Investment Research
Sectors: Telecom and Oil & Gas

Please share your opinion on research reports of these stock analysts. Do you invest according to their recommendations?

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.

India’s fastest growing companies

Business today magazine published a special article on India’s fastest growing companies. It selected 63 large caps, 29 midcaps and 25 small caps as fastest growing companies. These are safe bets for long term investors. Cement, Construction and Metal companies dominated the listing. You can pick 2-3 future stars if you carefully analyze the data.

Caution: This selection represents the performance of the companies in the past year but not the future growth prospects.

Fastest Growing large cap companies:
1. Hindustan Zinc
2. Welspun Gujarat
3. Unitech
4. Pantaloon Retail
5. Ultratech cement
6. Gujarat Ambuja Cement
7. Nagarjuna Construction
8. Aurobindo Pharma
9. Hindalco
10. United Spirits

Fastest growing Midcap Companies:

1. Kalpataru Power transmission
2. Shree Cement
3. Hindustan Copper
4. Centurion Bank of Punjab
51. Man Industries

Fastest growing small companies:

1. Era Constructions
2. Asian Electronics
3. ICSA
4. ORD Informatics
5. Ansal Housing

If you want more information about these companies, read Business Today dated March 6, 2007.

How to set financial goals?

Everyone should have specific financial goals and start saving from early age in order to have a sound financial status as early as possible. Financial goals are either short term or long term.

8 steps to set Financial Goals:

1. Establish your Financial goals:

Think about your financial goals in life start plan accordingly.

2. Collect Financial information:

Gather complete data about investments and debts i.e; Equities, savings, Insurance policies, real estate documents, Tax returns. Write down complete source list of income and expenses.

3. Analyse the Data:

Analyse all the data and prepare clear picture of your financials. You can use software like Microsoft Money or Quicken.

4. Create perfect plan:

Get an idea about your risk appetite. Prepare a suitable plan as per your future needs. Plan should include diversified investments. Never put all your eggs in one basket.

5. Implement your plan:

This is the crucial plan. If you fail to implement the plan, all the above work bites the dust.

6. Monitor your plan:

Monitor the plan and change as per your needs and performance of the investments.

7. Take the experts help if necessary especially in tax planning and equity investments.

8. Read Business news papers and finance magazines to improve the knowledge on various investment options.

Source: Business Line

JAAYDAAD : Pan India Property Maal

A new website for Real esate developers and buyers. Jaaydaad.com is a new property website that deals with both Ownership and rental properties.

It have 600 franchisee outlets across India one in each district. Through JAAYDAAD, you can buy property anywhere In India.

You can contact them through the website or outlet. It partnered with Real estate developers to showcase their products on the website. All the details are given in the uncluttered website with easy navigation

You can request your needs through the website or subscribe to news letter. It will face severe competition from other real estate websites like Magic Bricks, India Properties and 99 acres etc.

Visit the website.