NSE Nifty opened with a small upward gap of 3 points, but soon went into negative zone. NSE Nifty touched a low of 5517 against yesterday’s close of 5561. But soon NSE Nifty recovered smartly and touched a high of 5608. The markets are very volatile. Within first 10 minutes of trade, NSE Nifty has see a swing of nearly 90 points. The markets are trading with a gain of 4 points at 10.08 am.

Indian Stock markets went down quite substantially yesterday and the global indicators do not look very good.
US markets were weak. Dow Jones has hit its 7-month low. The markets in Europe and Asia are also in short term negative trend.

Intraday traders should stay away from market for few days. If one is looking for long term investment opportunity, then certainly some stocks can be picked up at lower levels. Ranbaxy Labs is one stock which has broken 400 levels. Cipla and Dr Reddy are also looking good in pharmaceutical space. Glenmark is another player in generic space which can give good returns in medium term.

Punj Lloyd and GMR Infra are good stocks in mid-cap space in which investors can take delivery for a period of 3 – 5 months. Videocon Industries is another stock which is trading at a low P/E and can offer decent returns over 3 months period.

SCI is another stock which can offer good returns. The counter is trading at a lower price as the recent results were not good. But shipping sector is looking good if one has a capacity to hold for 6 – 8 months.