Volatility will continue in Indian stock markets

Indian stock markets will continue their volatile run with action is concentrated on few large caps and mainly in Mid caps. Inflation control is positive news while growing deficit between imports and exports is a major concern. Arrival of monsoons and GDP growth is a positive trigger while rupee appreciation is a major concern. Even though Chinese markets were crashed 2 times in the recent months, Indian markets are sustaining their high valuations.

This week will provide vital clues regarding market movements either upwards or downwards.
Market sentiment: Bullish/ Volatile. Asian markets are in positive zone while US markets are in uncertain zone.

Rumour of the week:

1. Idea cellular finalised deal to buy out Spice telecom for about Rs 25,000 crore.
2. Ban on sugar exports may lift due to decreased sugar production in European markets.

Trend setting news:

Following companies will split their stocks to increase liquidity in their counters.
Apollo Tyres, City Union Bank, Sun TV, Divis Labs, Everest Kanto, Ruchi Soya, ABB, Bharat Seats and Easun Reyrolle. Some of these stocks will gain due to this news.

Significant News:
1. Indian Pharma companies can continue to use trial data of MNC Pharma companies.
2. ZEE’s Indian Cricket League (ICL) is in copy right troubles. Zee stock may feel the heat.
3. Rupee may continue to appreciate in the coming weeks due to FII inflows in DLF IPO and ICICI Bank IPO. RBI may not intervene.
4. Tata Steel integration with Corus is faster than expected.

Stock of the Week:

1. Shree Renuka sugars.

Best Stock picks for Day Traders:

1. Rain Calcining: It acquired US based CII Carbon.
CMP: 35.5
Target: 37 and 38
Stop Loss: 34

2. Mount Everest: Open offer.

3. Cipla: Positive momentum and MOU with Malaysian company.
CMP: 223.7
Target: 226
Stop Loss: 220

4. HCL Tech: $200 million outsourcing deal rumours.
CMP: 345
Target: 349
Stop loss: 341

5. SAIL:
CMP: 138.6
Target: 141
Stop Loss: 136

6. Shree Renuka Sugars: (Risk for day and safe for week)
CMP: 639
Target: 656
Stop Loss: 604

7. Neyveli Lignite Corporation: Good results.
CMP: 65.6
Target: 67
Stop loss: 64.3

8. Tata Steel: Faster integration with Corus.

Stocks to watch out:

1. Advanta India.
2. VIP.
3. UTI bank.
4. Nocil.
5. Mahindra and Mahindra.
6. Tech Mahindra.
7. Fortis healthcare.

Markets are in consolidation stage. Trade cautiously.

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?