MARKET VIEW

MARKET VIEW – It looks like the Indian stock market has bottomed out. But looking at the global situation which is still unclear , the market may test new bottoms. One can start investing in moderation in fundamentally good stocks. Even if India wont be directly affected by the subprime effect, there are factors which may depress the market. One of the main worry is the inflation figures which has been on the rise for the last several weeks. It has the potential to cross 6% in the coming weeks. Due to this the bank interest which was expected to be reduced by the RBI , wont happen in the near future until the inflation is brought under control. Reduction of bank interest rates would have lifted the realty scrips , as they have been hammered heavily in the last few days. Further a prolonged bearish stock market will have similar effect on the property prices. We might see a correction upto 20% in property rates. So as of now it is better to stay away from realty stocks. Another thing to worry is, the Industrial growth has slowed down considerably. It has come down to 5-6% from the 11-12% we had witnessed earlier.
Earlier short term recommendations –
Scrip Recommendations Target Remarks
Cipla sell@201 194 hold
Titan Ind. sell@1074 1054 Target hit
Rel. energy sell@1310 1276 Target hit
ICICI Bank sell@882 864 Target hit

Today’s short term recommendations –
Scrip Recommendations Target Remarks
Wipro sell@408 389 --
HCL Tech. sell@283 264 --
Bajaj Hind. sell@171 159 --