Tuesday, December 16, 2008

Market Outlook for 16.12.08

Strong & Weak futures
This is list of 10 strong futures:
Bajaj Hind, HDIL, STR Tech, Bindal Agro, Wej Guj, Patel Eng, AmbujaCem, IFCI, Amtek Auto & GE Ship.
And this is list of 10 Weak Futures:
Bhushan Stl, Redington, Rolta, Bharat Forg, HCL Tech, TCS, Satyam Comp, Jindal Saw, Infosys Tech & Abb.
Nifty is in Up Trend.

FII DATA
FII
16/12: 6.42 Cr. (Prov)
DII
16/12: -39.40 Cr. (Prov)

Headlines for the day
Corporate News Headline
DLF is planning to invest Rs. 150 bn over the next three years to develop various residential projects across the country in Rs. 15-40 lakh range. (BS)
HCL Technologies completed its acquisition of Axon Group Plc and said the purchase was already helping it bid for orders worth as much as USD 1.2 bn. (Bloomberg)
SRF has acquired the engineering plastic business and industrial yarn business of SRF Polymers for Rs. 1.52 bn. (BS)
Economic and Political Headline
The Public sector banks announced that home loans up to Rs. 5 lakh would be given at a maximum interest rate of 8.5%, while those between Rs. 5 lakh and Rs. 20 lakh would be offered at 9.25%. (BS)
The government said that it has taken various policy and administrative steps, including de-licensing of thermal power generation, to encourage greater participation of private developers in the sector. (BS)
The US industrial production fell 0.6% in November for the third time in four months, led by a slump at automakers as sales plummeted. (Bloomberg)


NIFTY AND SENSEX SPOT LEVELS FOR TODAY
NSE Nifty Index 2981.20( 2.05 %) 59.85
123
Resistance3022.90 3064.60 3117.10
Support 2928.70 2876.20 2834.50

BSE Sensex 9832.39( 1.47 %) 142.32
123
Resistance 9937.38 10042.38 10136.42
Support 9738.34 9644.30 9539.30

NIFTY FUTURES (F & O)

Below 2955 level, expect profit booking up to 2927-2929 zone and thereafter slide may continue up to 2901-2903 zone by non-stop.

Hurdles at 2991 & 2995 levels. Above these levels, buying may continue up to 3019-3021 zone.

Supply expected at around 3045-3047 zone and bulls need to absorb it.

On Negative Side, rebound expected at around 2875-2877 zone. Stop Loss at 2849-2851 zone.

Short-Term Investors:

Short-Term trend is Bullish and target at around 3202 level on upper side.

On Negative Side, corrections up to 2821 level can be used to buy. Maintain a Stop Loss at 2694 level for your long positions too.

BSE SENSEX

Technically Recovery should happen. If bulls reluctant then bears will try to hammer and have caution.

Short-Term Investors:

Trend is Bullish & Technical target at around 10443 level on upper side. Corrections up to 9297 level can be used to buy. SL at 8914 level.

FII DATA
FII 15-Dec-2008 +230.48
DII 15-Dec-2008
+42.72


Strong & Weak futures
This is list of 10 strong futures:
GE Ship, IFCI, Bindal Agro, Bajaj Hind, RNRL, HDIL, LITL, Nagar Const, NDTV & JP Associate..
And this is list of 10 Weak Futures:
J Stainless, Birla Jute, Satyam, Bhusan Steel, HCL Tech, Redington, Rolta, Bharat Forg, TCS & Finan Tech.
Nifty is in Up Trend.

GLOBAL CUES & RUPEE The Dow Jones Industrial Average closed at 8,564.53. Down by 65.15 points.

The Broader S&P 500 closed at 868.57. Down by 11.16 points.

The Nasdaq Composite Index closed at 1,508.34. Down by 32.38 points.

The partially convertible rupee <INR=IN> closed at 48.05/06 per dollar on yesterday, stronger than its previous close of 48.43/45.

Sell IT SECTOR Stocks

Trading Calls 16th Dec 08

+ve sectors & scripts :

CNXmidcap, Nifty junior,Midcap50, Biocon, Balramchin, IVRCLinfra, MTNL, PTC, Rajesexp, RPL, Sail

-ve Sectors & Scripts :

IT, Akruti, Network18, OBC, Wipro

Buy Bataindia-101 for 107 with sl 98

Buy Cairn-164 for 169-176 with sl 161

Buy LITL-161 for 172 with sl 155

Buy Gtoffshore-246 for 253-260 with sl 240

Buy Indiacem-99 above 101 for 106 with sl 99

Buy RPL-90 above 91.5 for 95 with sl 90

Buy Siemens-267 above 270 for 290 with sl 265

+ve to Market

1. Public Sector Banks Move on home loan 2. Expect +ve news from Fed meeting 3. FII continous Buying 4. Advance tax buy PSU Banks

-ve to Market

1. Expect Advance Tax payment down in YoY 2. Expected slow down in Q3 results 3. US Market 4. Redemption pressure in MF 5. Gold Rally 6. US Auto bailout package not approved by senate will be most negative for IT

--
Arvind Parekh
+ 91 98432 32381