INDIAN MARKETS ON 26 MAY 2014

What to do before May series expiry on 29th May ???

Factors that will rule the market :-

• American markets (Dow Jones & Nasdaq) both closed up 0.38% & 0.76% respectively on May 24.
• May series Nifty expiry expected between 7450-7500.
• A.P. HC vacates status quo order on Sun Pharma-Ranbaxy merger.
• High expectations as Modi becomes PM (finally happening for what this bull run began).
• Renuka Sugars sells 7.5% stake in NCDEX.
• Caledonia sells 3% stake in DHFL.
• BHEL commissions hydro power project in Himachal Pradesh.
• SREI Infra to raise 2500cr via security issuance in FY15.
• Govt. denies raising FII limit in HDFC Bank, Axis bank also done with limit on FII buying.
• Indian ADRs: Tata Motors rises 3.5%, Wipro gains 3%

What to buy :-

• Focus on stocks which have good fundamentals, parent company is debt free or under minimum debt, strong management and which are undervalued (may not have risen in the current bull run or have not risen in line with the markets)
• Bullish on Sun Pharma as the Sun Pharma-Ranbaxy merger is on.
• Fresh investments may be made in ICICI Bank or Yes Bank as they have lot of space for FII buying.
• Higher levels of May series expiry favour PSU banks (SBI, PNB, Bank of Baroda, Allahabad bank, Andhra Bank, United Bank)
• From Auto sector, prefer Bajaj Auto, M&M & Ashok Leyland.
• Bullish on Power stocks (Adani Power, Rel Power, Torrent Power, NTPC) 
• Bullish on LT & BHEL.
• Rel Infra may touch 785.
• Prefer Titan for a target of 355.
• Start accumulating Infosys & Wipro for longer run.
• Prefer Whirlpool ; target of 350
• Keep buying media stocks on every decline.
• Buy BhartiAirtel, Idea & Rcom on declines for portfolio ; 2G spectrum to be allocated soon.
• Infra and Reality shares to touch new heights ; 100 mega cities on NDAs plans.

Market opening:-

• NIFTY up 125bps on 7493.
• Rel Infra up 4.5% (763), IRB Infra up 14%.
• M&M up by 6.7% (1244).
• LT up by 7.2% (1628).
• Sunpharma up 2.2% (607).
• Whirlpool up 4.81% (317).
• Torrent power up (4.5%), Adani Power up (3%), Tata power up (3%).
• BHEL up (7%) & Renuka Sugars up (2.52%).
• All PSU banks up by more than 2% (PNB up by 2.5%).
• ICICI Bank & Yes Bank up by 2%.
• Andhra Bank up by 12% (104.50)
• Wipro up by 2.65% & Tata motors up by 4%.

Conclusion:-

Markets closed at the same levels from where they started in the morning after NIFTY showed 100 in red line on the screens. Good buying opportunity seen at these levels keeping in mind the expiry levels for the May series.

Disclaimer :

I may or may not have holding in the stocks I prefer or suggest to buy. The suggestions above are purely advisory in nature and are not binding on any reader.

Have a good day !!!