JULY SERIES

Market continues to rise as expected. The rise should continue for at least a fortnight. Petrol price hike will not affect the rise in the short term. In fact, HPCL, BPCL and IOC should rise due to rerating. Long term investors should consider buying these shares as these companies will never make losses due to decontrol and therefore should command better valuations. Insecticides continues to rise to 220 and is expected to do better. Astral polytechnic is a good buy at 257. A pvc pipe manufacturer trading at a low PE and also had given a breakout on Thursday.

MIDCAPS TO OUTPERFORM

As expected, Insecticides outperformed the market and flared upto 190. Keep buying at every correction. However, Nifty could not touch 5300 so far. The market undertone is bullish and Nifty will touch 5300 shortly. I believe that mid caps should now outperform the large caps. Some good buys are Nagarjuna Construction, Mundra port, United Spirits and United Phosphorus.

Market in June

As expected, stability is returning to market after the fall in May. Nifty should rise to around 5300 levels by 10th of June. Maruti, Nagarjuna Construction and Insecticides are good picks. Insecticides can be the among the top performing stock for couple of years. Buy for long term.

STABILITY IN MARKETS

As expected, the market was very volatile during the last few days. We expect the volatility to reduce after a couple of days and stability to return to the market. Talwalkars flared up to 204 before falling to 162 and again closing at 180. If u have bought it, hold it for long term as growing awareness for fitness, favourable demographic trend and rising income should be good for the company. Asian Paints and Bajaj Finserv are good medium to long term investments. Intra day traders can buy Aban every day for next 2-3 days. It should give a bounceback.

VOLATILE MARKETS

As expected, the market has fallen. It has opened gap up on Monday. Market is likely to be volatile in this week. Therefore, use declines to square off shorts. Tata Steel and Unitech have fallen substantially. Use the rise to square off Ranbaxy. You can hold on to other positions. Talwalkars has listed at 140 and the CMP is 151. Use every decline to buy the scrip for long term.

Markets in May

Stock market behaves very peculiarly in May. The markets rise/fall every alternate year. The market has risen in May 2005, 2007 and 2009(with one 20% upper circuit) and the market has fallen in May 2004(with one 15% lower circuit), 2006(with one 10% lower circuit) and May 2008. Going with the same trend, the market is likely to fall in May 2010. However, the fall may not be sharp as it is not followed by a strong rally. Therefore, remain cautious and make fresh investments towards the end of the month. HDIL and Aban have broken resistance levels, therefore square off the position. Tata Steel has fallen sharply, hold the short position for further gains. Do not square off other positions.

May picks

Buy Educomp, HDIL, Renuka futures. Short Sintex, SBI and Yes Bank futures. Buy United Spirits and Sesa Goa on declines. Book profit in Insecticides.

KASHMIR

I have just come back from Kashmir tour. I must say it's a wonderful place. Those who can't afford to go to Switzerland must go to Kashmir. Terrorism has almost come to an end in the valley. One must visit Srinagar(Stay in Houseboat), Gulmarg and Pahalgam. Prefer hotel rooms with heaters. It gets very cold when it rains in Kashmir. Gulmarg is the best of the lot. Hotel Hilltop is good. A ride on the bike is a must. Snow is found till mid May. Hotel Mountview has beautiful view of Pahalgam hills and garden. I have now seen almost all the tourist places in India and Kashmir is the best. According to me, the top 5 most beautiful spots in India are Tajmahal, Jaisalmer desert, Snow spot in Gulmarg, Mini Switzerland in Pahalgam and Golden temple in Vellore near Tirupati.

new picks

As indicated, sell Unitech at 86, book profit in Natco. Buy DCHL and Ranbaxy futures and short Bank Nifty futures.

f&o picks

Markets are likely to be volatile in coming week in view of credit policy and result announcement of many companies. Buy Aban, United Spirits and Renuka futures on decline for a month and short Unitech and Tata Steel futures on rise.

Granules

Granules has closed above Rs.100. Buy for a quick and sharp upmove

New picks

Natco Pharma has crossed multiple year high of Rs.145 and looks good for short as well as long term. ICICI Bank is at 2 year high and looks strong at Rs.975 due to strong credit growth. Buy Jindal Saw for very short term if it closes above Rs.225

Stock Market in April

The market is likely to remain bullish as the indices have crossed 26 month high. Midcap shares are likely to outperform the market. Buy shares that are touching their 52 week high or crossing double/triple tops. Some good picks are Insecticides, Welspun India, Sun TV, Everest Inds etc.