Market Outlook31st Dec 2010

Strong & Weak  

This is list of 10 strong

Praj Ind, Hexaware, Core Protect, Ruchi Soya, Ispat Ind, Aban, Hind Zinc, BalramPur Ch, Sterlite & Renuka. 

And this is list of 10 Weak 

Welcorp, Orbit Corp, IOC, Ashok Ley, SCI, Ibrealest, Dena Bank, UCO Bank, Hind Petro & Central Bank.

The daily trend of nifty is in Up trend 

• Supp / Resis

Indices		Supp/Resis	1	2	3
	Nifty	Resistance	6118.05	6134.25	6162.10
		Support	6074.00	6046.15	6029.95
	Sensex	Resistance	20441.95	20494.82	20578.74
		Support	20305.16	20221.24	20168.37

Scripts to watch on 30th Dec. : ACC, Bhartiatl,  Bhel, BPCL, Bajaj-Auto, DLF, HDFCBank,  ICICIBank, IDFC,  L&T, M&M, Maruti, ONGC, Reliance, SBI, TataMotors, TataPower, Tisco, Wipro, Bajaj-Auto, DrReddy, HDFC, Rpower, SesaGoa,

Derivative Stratagy today on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-strategy-31-Dec-2010.htm

Market Outlook
	Yesterday, Nifty surged and closed above 6,100 mark. After forming a Double bottom on daily chart, Nifty gave a break out in last trading session with healthy volumes, which is a strong bullish signal. Today, Nifty is likely to open on a flat note following mixed clues from Asian markets. Resistance for Nifty now seems at 6,130-6,150 while support stand at 6,060-6015. On upside, if level of 6,130 breached decisively then we could see rise up to the mark of 6,150-6,180. On downside, the first support will be at 6,060, followed by the 50-days Moving Average of 6,015. The advance tax numbers were encouraging for the third quarter, clearly reflecting the continued good showing of Indian companies. Therefore, we believe that FII investors will continue to invest in India as Indian markets increasingly became one of the most attractive destinations in the world. Oil & gas, capital goods and defensive picks, like Pharma were among the sectors that saw higher rollovers on the long side for January series. Technical indicators like MACD and RSI are also supporting its uptrend move. MACD is showing positive divergence, crossing its signal line (9 Days exponential moving average) from the below. Further, MACD is above the zero line, would set-up for a more long-term move upward if maintained. The RSI also looks strong at 60 with plenty of upside potential before any over-sold indications.

Tip for the day
	DREDGECORP (BUY) RSI is at 55 neutral territory showing positive crossover. MACD is showing positive divergence. Stock next resistance level seems at 480 if its break then stock could rise up to 500. Today stock has made new candlestick above 34 day EMA which is sign of uptrend. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 459 BUY 463/468/475 450 420/490 RAJESH EXPORT (BUY) RSI is at 78 level, indicating more buying. MACD is showing positive divergence. Stochastic is hovering in neutral zone showing positive crossover. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 135.70 BUY 137/140/143 130 120/150 BAJAJ HIND (BUY) RSI is showing a reversal trend after a sharp correction. MACD is showing positive divergence. Stochastic is at 80 levels and it has given a buy crossover. Today stock has made new candlestick above 34 day EMA which is sign of uptrend. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 122.45 BUY 124/127/130 118 110/140 E CLERX (BUY) RSI is close to the neutral zone at the level of 45 and indicating uptrend. MACD is likely to show positive divergence. Stochastic is moving in neutral territory showing positive crossover also indicating upside. The stock has just crossed its 34 days exponential moving average and it is trading above it indicating a short term bullish trend. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 720.50 BUY 730/740/750 705 670/780

US markets
	US markets closed marginally lower as investors booked profit after markets rose to two-year highs. Investors sold stocks despite reports on weekly jobless claims, Chicago-area manufacturing activity and pending-home sales came better than expected. Volumes remained light on holiday season. Early in the day, Labour department report showed that for the first time since July 2008, initial unemployment claims fell below 4,00,000. Claims declined by 34,000 to 3,88,000 in the week ended December 25. Later report showed that, Chicago regional business activity soared to a 22-year high in December with reading rising to 68.6 in December from 62.5 in November. Additionally, National Association of Realtors said its pending home sales index rose by 3.5% in November following a downwardly revised 10.1% increase in October. Retreat in oil prices on higher than expected US crude inventories data pulled energy stocks down.

European markets
	European markets closed lower pulled by banking and energy stocks. Investors locked in profit as valuations get stretched after markets rose close to two year's high. This was the last full trading day on European markets as London markets will close early on Friday for New Year's Eve and won't reopen until Tuesday. French markets will also close at midday Friday along with other Euronext markets. Volumes once again remained thin as investors have gone for the New Year's holiday. Energy related stocks declined after oil prices tumbled as crude inventories fell less than expected. Mining related stocks managed to edged higher as metal prices continued to make new highs.

Index Latest 1 D Chg(%) YTD(%) NSE Index (30 Dec 2010) 6101.85 0.68 17.32 Sensex (30 Dec 2010) 20389.07 0.66 16.74 Dow Jones Ind. .. (30 Dec 2010) 11569.71 -0.14 10.95 Nasdaq Composit.. (30 Dec 2010) 2662.98 -0.15 17.36 Hang Seng (30 Dec 2010) 22999.34 0.13 5.15 Straits Times (30 Dec 2010) 3212.46 0.14 10.87 FTSE 100 (30 Dec 2010) 5971.01 -0.42 10.31 CAC 40 (30 Dec 2010) 3850.76 -1.03 -2.17 Sectors Close 1D Chg(%) BSE IT 6827.59 1.03 BSEPSU 9400.39 0.96 OILGAS 10553.19 -0.06 Advance Decline Ratio Value(in Cr.) Index 5.00 568.60 SENSEX 4.00 7239.30 NIFTY

SENSEX    NIFTY Top Gainers Close 1D Gain(%) YTD(%) NTPC Ltd. 201.90 2.00 -14.34 Hero Honda Motors Ltd. 1991.90 1.88 16.05 Tata Motors Ltd. 1296.20 1.87 63.54 Top Gainers Close 1D Gain(%) YTD(%) Suzlon Energy Ltd. 54.60 5.51 -39.57 NTPC Ltd. 202.25 2.20 -14.17 Tata Motors Ltd. 1300.15 2.06 64.25 Top Losers Close 1D Loss(%) YTD(%) HDFC Bank Ltd. 2302.45 -1.18 35.41 Oil And Natural Gas Corporatio... 1294.25 -0.64 9.91 Bajaj Auto Ltd. 1476.95 -0.26 67.67 Top Losers Close 1D Loss(%) YTD(%) Bharat Petroleum Corporation L... 659.20 -1.48 3.72 HDFC Bank Ltd. 2305.50 -0.96 35.44 Kotak Mahindra Bank Ltd. 444.95 -0.88 10.28

Top

Most Active Stocks by value (in Cr) BSE Close %Chg Value(in Cr.) Volume SBI 2752.80 -0.12 71.58 259345 Tata Motors 1272.35 1.87 57.37 445222 Tata Steel 667.90 0.43 50.10 745529 InfosysTechn 3399.50 1.21 39.90 116162 Hero Honda 1955.15 1.88 33.92 172127   NSE Close %Chg Value(in Cr.) Volume SBI 2755.20 -0.20 581.24 2106254 ICICI Bank 1129.45 0.66 424.95 3741694 InfosysTechn 3404.90 1.23 386.51 1123961 Tata Motors 1273.85 2.06 372.71 2887614 RIL 1048.60 0.25 349.93 3328572   Strike Price Value Price %Chg    Most Active Calls by Contract Value (in Cr) NIFTY ( 30 Dec 2010 ) 6100.00 2838252.62 1.35 522.22 NIFTY ( 30 Dec 2010 ) 6000.00 1038186.68 97.00 -29.07    Most Active Puts by Contract Value (in Cr) NIFTY ( 30 Dec 2010 ) 6000.00 1882104.66 0.05 10700.00 NIFTY ( 30 Dec 2010 ) 6100.00 1665613.53 0.05 77100.00    Most Active Future by Contracts Value (in Cr) SBIN ( 30 Dec 2010 ) - 93482.32 2749.20 0.33 SBIN ( 27 Jan 2011 ) - 73911.84 2770.65 0.27     International News     Retail sales in Hong Kong grew less than expected in November.Sales volume increased 15.2% year-on-year in November, slower than a revised 19.7% growth in the previous month. (RTT News) The Euro-coin indicator rose for a third consecutive month in December. The indicator, that evaluates the current economic situation in the euro area, rose to 0.49 from November's 0.45, consistent with an underlying annualized growth rate of 2%. (RTT News) Japanese major Sony Corp has filed a patent-infringement complaint against rival and South Korean conglomerate LG Electronics related to certain mobile phones and modems. The alleged patent violations are related to image and audio technologies used in mobile phones, among others. The compliant has been filed with the US International Trade Commission. (Economic Times)         Domestic News     Government has approved the infusion of the second tranche of equity of Rs 1,200 crore to ailing Air India with the condition that its management should rationalise the wage structure of over 25,000 employees. (Indian Express) Carrefour S.A. made its long awaited entry into India by opening its first cash-and-carry store in the east of New Delhi, as the French retailer moves forward with its plan to expand in major emerging markets. (The Wall Street Journal) Worried over its dues that are understood to be about Rs 550 crore from Ispat Industries, State Trading Corporation (STC) has written for recovery to JSW Steel, which has announced acquisition of majority stake in the debt-ridden firm. (Economic Times)     Currency Exchange-Rate 1D Chg(%) 1M Chg(%) EUR 59.47 0.42 % -1.47 % GBP 69.69 0.38 % -2.68 % USD 44.90 -0.49 % -2.48 % FIIs Activity Rs. Cr. MTD YTD Equity in flows 1783.90 60249.90 761606.70 Equity Out flows 1178.80 60552.60 630693.50 Net 605.10 -302.70 130913.30