FII -191.49
DII +207.55
Strong & Weak futures
This is list of 10 strong futures:
HDIL,DLF,Matrix Lab,Patel Eng,Purva,Unitech,Educomp,Bindal Agro, Aptech & Suzlon.
And this is list of 10 Weak Futures:
J Stainless,Satyam Comp,Bhusan Stl,Birla Jute,Rolta,Redington,Jindal Saw,Nucleus,Sterlinbio & Gt Offshore.
Nifty is in Up Trend.
Corporate Announcements:
· RIL has received a grant of around Rs. 30 mn from the US for its proposed coal-to-liquid fuel project. (ET)
· Wockhardt is planning to raise Rs. 5 bn through preferential allotment of shares, for meeting payments to its Foreign Currency Convertible Bond holders. (BS)
· C&C Construction received an order of Rs. 7.81 bn to set up a frieght corridor from New Delhi to New Ganj Khwaja in Bihar. (BS)
· KEC International bagged an order valued at Rs. 880 mn form Barki Tojik, national electricity company of Tajikistan. (ET)
· Parsvnath Developers put on hold 12 SEZ projects across the country due to credit crunch. (BS)
· ACC has indefinitely put on hold the Rs. 6 bn expansion programme of its ready-mix concrete business. (BS)
Economic and Political Headlines:
· The Planning Commission said that the country's economy will need stimulus package in next fiscal as well since global slowdown will continue in 2009-10. (BS)
International News Headlines:
· The Bank of Japan cut its benchmark interest rate to 0.1%, increased purchases of government debt, and announced plans to buy as much as USD 223 bn of shares held by banks to boost their capital and support a sagging stock market. (Bloomberg)
· General Motors Corp. and Chrysler LLC will get USD 13.4 bn in initial government loans to keep operating in exchange for a restructuring under a rescue plan announced by President George W. Bush. (Bloomberg)
· Treasury Secretary Henry Paulson urged Congress to release the second half of a USD 700 bn bailout program after he exhausted he first USD 350 bn in less than three months. (Bloomberg)
· The UK consumer confidence rose to minus 33 from minus 35 in December as the cost of gasoline fell and the government cut taxes. (Bloomberg)
Strong & Weak futures
This is list of 10 strong futures:
HDIL, Oswal Cem, Patel Eng, Purva, HCC, DLF, Bajaj Hind, Jet Airways, Unitech & Matrix Labs.
And this is list of 10 Weak Futures:
J Stainless, Satyam, Birla Corp, Bhushan Steel, Roltas, Redington, Jindal Saw, GT Offshore, Sterlin Bio & Strides Arcolab.
Nifty is in Up Trend.
NIFTY SPOT LEVELS FOR TODAY
 | 3077.50 | ( 0.55 %) | 16.75 |  |
| 1 | 2 | 3 | ||
| Resistance | 3110.77 | 3144.03 | 3181.27 | |
| Support | 3040.27 | 3003.03 | 2969.77 | |
FII &DII DATA FOR 19-Dec-2008
FII +378.43
DII + 410.85
NIFTY FUTURES (F & O)
Below 3066 level, expect profit booking up to 3034-3036 zone and thereafter slide may continue up to 3014-3016 zone
Hurdles at 3092 & 3106 levels. Above these levels, buying may continue up to 3117-3119 zone and thereafter expect a jump up to 3137-3139 zone.
Above 3147-3149 zone, it can zoom up to 3167-3169 zone and supply expected at around this zone. This supply should get absorbed too.
On Negative Side, rebound expected at around 3004-3006 zone. Stop Loss at 2984-2986 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 Profit Booking should happen.
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.
GLOBAL CUES & RUPEE
The Dow Jones Industrial Average closed at 8,579.11. Down by 25.88 points.
The Broader S&P 500 closed at 887.88. Up by 2.60 points.
The Nasdaq Composite Index closed at 1,564.32. Up by 11.95 points.
The partially convertible rupee < INR = IN > ended at 47.25/26 per dollar on Friday,
weaker than Thursday's close of 46.95/96.
REALTY INDEX Stocks May Zoom.
Trading Calls 22nd Dec 08
+ve sectors & scripts : Bank, CNX500, Fertlizers, Reality, Ashokley, OBC, Jpassociates,
Buy Mcdowell-969 for 990-1004 with sl 959 [Trading]
Buy DLF-307 for 322 with sl 301
Buy Biocon-123 for 128-134 with sl 121
Buy Essoroil-94 above 96 for 112 with sl 94
Market Weekly Outlook
Nifty future may see some correction
Pointers
Nifty future trades at a premium to the spot.
Volatility index dips below 40.
It was yet another winning stretch for Nifty futures, which gained over 5.5 per cent to end the week at 3082.4 points.
This time around Nifty futures also ruled at a wider premium during most part of last week.
It, however, settled at about five-point premium to the spot.
Rollover of open interest positions also picked up moderately. The Nifty futures saw a rollover of about 31 per cent, slightly higher than that of the previous month.
The market-wide rollover was also a shade better at 32-35 per cent.
Follow up Last week we had suggested two strategies depending on how the Nifty opened. Since the Nifty opened the week on a soft note, traders who would have gone long on Nifty future (as recommended) must have made decent profits.We had also suggested traders to consider a short straddle by using 2900 strikes.
This strategy would have yielded marginal profits.
DLF: We advised investors to go short on the stock, if it dipped below 265, with a stop-loss at Rs 300.
Though it dipped below 265, it did not reach our targeted level and instead bounced back to hit the stop loss.
Nifty future outlookDespite breaching the 2950-mark, Nifty future struggled to move past the 3100-mark last week.
While the immediate resistance appears around 3250, a move above could take it to 3550.
On the other hand, if it fails to sustain at current levels, the Nifty future will find support at 2950, and then at 2750.
India VIX or Volatility Index has weakened quiet a bit in recent weeks.
It is now hovering at about 38.5 against its previous week's level of 49.23 points.
The softening of the volatility index indicates that a lot of puts may have been squared off, which in itself presents a positive bias for the market.
There has been steady accumulation of open interest positions in Nifty January 3300 call and 3000 and 2800 puts.
This indicates that the Nifty might move in a tight band of 2800-3300 in January. However, a breach on either side could swing the market sharply.
Recommendation:Consider the following two strategies:
1) Though the undertone remains bullish, Nifty future could turn weak if it touches the immediate resistance zone. Hence we suggest investors to go short on Nifty future keeping the stop-loss at 3250. And if the market does go low as predicated, traders can book profits at 2950, 2850 and 2750, depending on their risk profile.
FIIs trend
The cumulative FII positions as a percentage of the total gross market position on the derivative segment as on December 19 stood at 30.58 per cent.
Foreign institutional investors were predominantly net buyers during most part of last week.
They now hold index futures worth about Rs 9,850 crore (Rs 8,842 crore) and stock future worth about Rs 12,314 crore (Rs 10,649 crore).Their index options holding stood higher at about Rs 15,310 crore (Rs 13,581 crore).
--Arvind Parekh
+ 91 98432 32381
