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 on May 17, 2007

Indian stock markets may fall in the initial trading due to booking of profits. Markets recovery may depend on Rupee appreciation and crude price. Day Traders may enter into my stock picks after the settlement of initial mayhem (15-30 minutes).

Market sentiment: Bearish and Volatile.

Significant News:

1. Copper prices are falling. Stay away from metal stocks.
2. Crude price is falling. Oil refinery stocks may hog limelight.

Stock Picks for Day Traders:

1. Tata Power:
CMP: 588.3
Target: 595, 603 and 614
Stop Loss: 574
Tata power signed MOU a contract with Doosan heavy industries (Value 4,100 crore).

2. Tata Tele:
CMP: 27.35
Target: 28.4 and 30
Stop Loss: 25.9
Tata Tele is in 50:50 JV with Virgin Mobile to introduce Virgin brands in India.

3. Glenmark Pharma: (With some risk)
CMP: 642.8
Target: 653
Stop Loss: 629
It received approval for Parvostatin. Enter into this stock after initial selling (if any).

Positive Stock News:

1. Wipro bagged “SAP Pinnacle award” in software solutions area.

Negative Stock news:

1. Essar steel SEZ is in troubles. It will see massive selloff from investors.
2. Raj TV may not grow much.
3. Export duty may land Indian diamond industry in troubles.
4. Wockhardt and Abbott are in legal tussle. Stay away from Wockhardt.

Please share your stock picks.