Market Outlook 15th Dec 2010

Strong & Weak  

This is list of 10 strong 

 Hexaware, Ispat Ind, Petronet, Polaris, AREVA, HCL Tech, Wipro, GSPL, NTPC & Sun TV. 

And this is list of 10 Weak 

 Welcorp, Ruchi Soya, LIC Housing, RCOM, India Info, Jidal SWHL, Escorts, STR Tech, Ibrealest & KS Oils.

The daily trend of nifty is in Down trend 

Break Out !!: Intraday calls On the Basis of Break out System (Cash Segment) 

M&M Buy above 766 770/774/778/782 757 

M&M Sell Below 749 745/741/736/732 757 

Break Out !!: Reliance Buy above 1063 1068/1073/1079/1087 1055 

Reliance Sell Below 1041 1035/1031/1025/1018 1055 

Break Out !!: SBI Buy above 2816 2825/2837/2849/2859 2792 

SBI Sell Below 2769 2760/2751/2741/2732 2792 

• Supp / Resis

Indices		Supp/Resis	1	2	3
	Nifty	Resistance	5969.12	5994.13	6034.32
		Support	5903.92	5863.73	5838.72
	Sensex	Resistance	19883.54	19967.88	20098.95
		Support	19668.13	19537.06	19452.72

Scripts to watch on 15^th Dec. : AxisBank, Bhartiatl, Biocon, Bhel, Cairn, HDFCBank, HeroHonda, ICICIBank, L&T, M&M, ONGC, Rcom, Reliance, RelInfra, SBI, TataMotors, Tisco, Wipro

Market Outlook
	Yesterday, Nifty managed to close above the important resistance level of 5,912 (20 Days simple moving Average). Today, Indian market is likely to open on a flat to negative note following weak sentiments from Asian markets which are trading lower as Japanese manufacturers' business sentiment worsened for the first time in nearly two years. The immediate resistance for Nifty now comes at 5,980 level; if it moves above this level with volumes then it may even test 6,044(50 Days simple moving Average) while support for the Nifty will be at 5,912 and 5,897. In option front huge short accumulation in 5,800 strikes put and 6,000 strikes call also suggests that Nifty has a strong support at 5800 levels and resistance at 6000 level. State-run manganese producer MOIL is listing today. A strong debut by MOIL is expected to lift sentiment for metal and mining stocks. Advance tax payments by corporate will guide the further direction of market.

Tip for the day
	UFLEX (BUY) RSI is at 33 neutral territory showing positive crossover indicating uptrend. Stochastic is moving in neutral zone showing positive crossover. MACD is showing bullish crossover. The stock has rebounded after undergoing a deep correction and has breached its resistance at 190 levels with good volumes indicating that it will move upwards from here. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 200.70 BUY 203/207/211 196 190/215 TUBE INVESTMENT (BUY) RSI is at 58 neutral territory showing positive crossover. MACD is showing positive divergence. Stock next resistance level seems at 155 if its break then stock could risel up to 165. Stochastic is in overbought zone showing positive crossover. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 151.30 BUY 153/157/161 147 140/160 HERO HONDA (SELL) RSI is at 36 showing negative crossover indicating downtrend. Stochastic is trading in neutral territory at 55 likely to show negative crossover. Stock is trading below 08 and 34 day EWMA and showing correction. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 1712.75 SELL 1695/1680/1660 1740 1650/1760 ADANI ENTERPRISES (SELL) RSI is in profit booking phase. Stochastic is hovering in neutral zoneshowing negative crossover suggesting downside. Stock is trading below 08 day EWMA showing correction. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 635.35 SELL 628/620/610 645 600/650

US markets
	US markets closed the day with modest gain after upbeat retail sales and FOMC's comment that economy is continuing to improve. Markets started the day on positive note as sentiments were uplifted after data showed US retail sales rose more than expected in November. Before the market hours, Commerce Department reported that retail sales rose by 0.8% in November following an upwardly revised 1.7% increase in October. Later, market held in positive terrain after Fed left interest rates unchanged at 0-0.25% and also kept its asset purchase program at USD 600 billion. Fed also said that economic recovery is continuing, although it acknowledged that the rate of growth has been insufficient to bring down unemployment.

European markets
	European markets closed with modest gains as investors await Federal Open Market Committee's announcement on the interest rate, state of US economy and extension of QE beyond USD 600 billion. Positive economic data including German economic confidence and Eurozone industrial production helped markets higher but gains were capped as investors approach cautiously ahead of FOMC. German economic sentiments improved for the second consecutive month in December. Germany's ZEW indicator of economic sentiment rose by 2.5 points in December to 4.3 points compared with 1.8 points in November. Further strength came after report showed that Eurozone industrial production grew 6.9% year-on-year in October, faster than a 5.4% rise in the previous month.

Indian markets (Prev Day)
	The markets witnessed a high bout of volatility throughout the trading session and finally ended the day's trade on a strong note. After a positive opening, the benchmark indices soon slipped into the negative terrain as investors headed towards profit booking. Auto and banking stocks the major losers in the early hours of trade. However, the negative sentiment could not be sustained for long and the indices drifted into the positive range in early morning hours on the back of a boost from the upbeat Asian markets. Markets lacked a clear direction and were wavering up and down near the base line during the mid morning session. The late hours of morning trade got a heavy push from the release of inflation data that came out to be 7.48% in November as against 8.58% in the previous month. Further, the oil & gas stocks were in demand on the buzz of hike in fuel prices. Metal stocks were also trading higher. Despite this, the volatility could not be ruled out and indices again began to fall during the afternoon session. A mixed opening on the European blocks also could not provide any direction to the markets and therefore they seemed clueless during mid afternoon. All the sectoral indices were positive except for the auto index which remained the biggest loser the day on the reports that Munjal family is planning to buy Honda Motor's 26% stake in the joint venture for about USD 1 billion or half the current value of the stake. Finally, the markets picked in the last hour to close on a healthy note. At the end, Sensex closed at 19,799.19 up by 107.41 points. It touched an intraday high of 19,836.82 and low of 19,621.4. Nifty ended at 5,944.10 up by 36.45 points. It made a high/low of 5,953.95 and 5,888.75 respectively.

Derivative Stratagy today on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-strategy-15-Dec-2010.htm

Index Latest 1 D Chg(%) YTD(%) NSE Index (14 Dec 2010) 5944.10 0.62 14.29 Sensex (14 Dec 2010) 19799.19 0.55 13.37 Dow Jones Ind. .. (14 Dec 2010) 11476.54 0.42 10.05 Nasdaq Composit.. (14 Dec 2010) 2627.72 0.11 15.80 Hang Seng (14 Dec 2010) 23431.19 0.49 7.13 Straits Times (14 Dec 2010) 3176.91 -0.17 9.64 FTSE 100 (14 Dec 2010) 5891.21 0.52 8.84 CAC 40 (14 Dec 2010) 3902.87 0.27 -0.85 Sectors Close 1D Chg(%) BSE IT 6302.19 0.48 BSEPSU 9460.56 0.96 OILGAS 10657.73 0.91 Advance Decline Ratio Value(in Cr.) Index 1.73 828.28 SENSEX 2.06 6074.88 NIFTY

SENSEX    NIFTY Top Gainers Close 1D Gain(%) YTD(%) Sterlite Industries (India) Lt... 170.65 3.46 -20.78 Reliance Infrastructure Ltd. 833.10 2.67 -27.36 Tata Steel Ltd. 645.50 2.33 4.52 Top Gainers Close 1D Gain(%) YTD(%) Sterlite Industries (India) Lt... 170.60 3.39 -20.98 Ranbaxy Laboratories Ltd. 561.55 2.90 8.42 Reliance Infrastructure Ltd. 832.30 2.62 -27.42 Top Losers Close 1D Loss(%) YTD(%) Hero Honda Motors Ltd. 1713.85 -3.30 -0.15 Jindal Steel & Power Ltd. 687.55 -1.41 -2.33 Mahindra & Mahindra Ltd. 757.60 -1.34 40.19 Top Losers Close 1D Loss(%) YTD(%) Hero Honda Motors Ltd. 1712.75 -3.45 -0.29 Jindal Steel & Power Ltd. 686.70 -1.49 -2.36 Mahindra & Mahindra Ltd. 757.85 -1.37 40.23

Top

Most Active Stocks by value (in Cr) BSE Close %Chg Value(in Cr.) Volume SBI 2747.15 1.66 182.76 659138 Tata Steel 630.80 2.33 101.24 1578228 RIL 1041.80 1.04 79.94 760158 Tata Motors 1275.85 2.19 63.72 491256 ICICI Bank 1118.55 0.03 48.89 437822   NSE Close %Chg Value(in Cr.) Volume SBI 2744.85 1.74 670.41 2418179 Tata Motors 1277.20 2.25 492.53 3791092 RIL 1041.75 1.30 483.40 4590209 Tata Steel 631.00 2.47 365.85 5697913 Axis Bank 1320.65 -1.31 327.24 2513689   Strike Price Value Price %Chg    Most Active Calls by Contract Value (in Cr)    Most Active Puts by Contract Value (in Cr)    Most Active Future by Contracts Value (in Cr)     Commodities     Crude oil prices slipped settle at USD 88.28 a barrel, seesawing with the dollar and pressured after the Federal Reserve said economic recovery was still to slow and reaffirmed the central bank's commitment to its bond-buying plan designed to stimulate the economy. Gold rose to settle above USD 1,404.         International News     British annual inflation rose further in November on higher food prices. Inflation stubbornly stayed above the central bank's 2% target for the twelfth consecutive month. The annual inflation rate for November was 3.3%, the highest since May, up from a 3.2% increase in October. (RTT News) Brazil's retail sales increased a seasonally-adjusted 0.4% month-on-month in October compared to a downwardly revised 0.3% rise in September. Year-on-year, retail sales increased 8.8% in October compared to an upwardly revised 12% growth in September. (RTT News) Global steel giant Arcelor Mittal has received regulatory approvals for acquiring Canada's Baffinland Iron Mines Corporation in a deal worth Canadian 433 million. (Economic Times)         Domestic News     The telecom ministry on Tuesday issued show-cause notices to some of the new operators, which are alleged to have suppressed information to get licences and have also failed to roll out services as mandated. (NDTV Profit) The UK's leading telecom giant British Telecom (BT) has completed the sale of 5.5% stake in Indian IT firm Tech Mahindra to the latter's parent group Mahindra & Mahindra for Rs 451 crore. (Business Standard) Consumer products maker Marico Ltd sees pressure from rising input costs impacting the firm's margins in the third quarter of the current fiscal, a top official said. (The Economic Times)     Currency Exchange-Rate 1D Chg(%) 1M Chg(%) EUR 60.31 1.04 % -0.08 % GBP 71.42 0.00 % -0.27 % USD 45.01 -0.53 % -2.24 % FIIs Activity Rs. Cr. MTD YTD Equity in flows 2458.80 35912.50 737269.30 Equity Out flows 2696.40 37311.10 607452.00 Net -237.60 -1398.60 129817.40