Thursday, December 16, 2010

Market Outlook 16th Dec 2010

Strong & Weak  
This is list of 10 strong 
Hexaware, Ispat Ind, AREVA, HCL Tech, Wipro, Polaris, Petronet, KS Oils, Tata Motors & Dabur. 
And this is list of 10 Weak 
Welcorp, LIC Housing, KFA, Escorts, Ibrealest, India Info, UCO Bank, Orbit Corp, STR Tech & Jindal SWHL.
The daily trend of nifty is in Down trend 

Scripts to watch on 16th Dec. : AxisBank, Bhartiatl, Biocon, BPCL, Bhel, Cairn, HDFCBank, ICICIBank, L&T, M&M, ONGC, Reliance, RelInfra, SBI, Sterlite, TataMotors, Tisco, Wipro

  • Supp / Resis SPOT/ CASH LEVELS FOR INTRADAY
Indices Supp/Resis1 23
Nifty Resistance 5934.775977.23 6011.72
Support 5857.825823.33 5780.87
Sensex Resistance 19786.44 19925.12 20032.62
Support 19540.26 19432.76 19294.08


  Market Outlook
 
 

Yesterday, Nifty closed at 5,892.30 level, down by 52 points. Indian market is likely to open on a flat note following mixed sentiments from global markets. Nifty is likely to trade lower between 5,900-5,865 level in morning session ahead of the mid quarter policy review. However thereafter short covering could be witnessed in indices if RBI takes some positive step to ease the liquidity.

Immediate support for Nifty now could be seen at 5,865-5,850. Breaking below the 5,850 level decisively will make the trend further weaker and in that case Nifty may likely to test 5,800 mark. On the other hand, resistance for Nifty could be seen at 5,907- 5,944 mark and sustaining above 5,944 level could lead to Nifty to 5,980 level.Technically, positive divergence in the MACD indicates that it is strengthening and could be on the verge of crossing its signal line (9 Days EMA) which is a bullish signal.

Further, SBI, RIL, HDFC, HUL, TCS and Hindalco have paid higher advance taxes for the December quarter. Higher advance tax payment from Indian companies could lift the buying sentiment in market.Investors will focus on RBI mid-quarter policy review which is due today. Considering the tight liquidity situation, the RBI is likely to keep policy rates unchanged and would take further steps to ease the liquidity pressure.

 
 
    Tip for the day
 
 

GITNAJALI (BUY)

  • RSI is at 34 neutral territory showing positive crossover indicating uptrend.
  • Stochastic is moving in neutral zone showing positive crossover.
  • MACD is likely to show bullish crossover.
  • The stock has rebounded after undergoing a deep correction and has breached its resistance at 200 levels with good volumes indicating that it will move upwards from here.
CMP Buy/Sell Target PriceStop Loss Support/ Resistance

204.80

BUY

207/211/215

198

190/230

HPCL (BUY)

  • RSI is at 45 neutral territory showing positive crossover.
  • MACD is showing positive divergence.
  • Stock next resistance level seems at 420 if its break then stock could risel up to 430.
  • Stochastic is in neutral zone showing positive crossover.
CMP Buy/Sell Target PriceStop Loss Support/ Resistance

417.45

BUY

422/428/435

408

390/440

JET AIRWAYS (SELL)

  • RSI is at 36 showing negative crossover indicating downtrend.
  • Stochastic is trading in oversold territory at 34 likely to show negative crossover.
  • Stock is trading below 08 and 34 day EWMA and showing correction.
CMP Buy/Sell Target PriceStop Loss Support/ Resistance

736.35

SELL

728/718/705

750

700/760

 
 
    US markets
 
 US stocks ended lower despite New York State manufacturing activity and industrial production numbers beat forecasts, while consumer price inflation remained subdued even as strong retail sector data. Profit taking may have contributed to the increase in the value of the dollar as well as an increase in bond yields. On the economic front, consumer price index edged up by 0.1% in November, just below expectations for an increase of 0.2%.Core consumer prices, which exclude food and energy prices, also rose by 0.1% in November, in-line with economist estimates. The New York Federal Reserve revealed that its industrial production rose by 0.4% in November, just above forecasts for a pickup of 0.3%. The report also showed that capacity utilization rose to 75.2% in November, marking the highest level since October of 2008. General business conditions index climbed to a positive. In corporate news, Yahoo revealed plans to reduce about 4% of its total workforce or about 600 jobs in an effort to boost its revenue growth and margin expansion.  
 
    European markets
 
 European markets finished lower as shares of lenders and precious metal miners retreated. Investor sentiment was subdued after ratings agency Moody's placed Spain's sovereign credit rating on review for a possible downgrade. In economic news, the UK unemployment rate edged up in the three months to October to 7.9%, the highest rate in six months, from 7.7. The rate was remained unchanged. Euro zone employment remained stable in the third quarter after edging up 0.1% in the previous quarter. Meanwhile, the year-over-year decline in the number of employed moderated to 0.2% from 0.6% in the second quarter.  
 
    Indian markets (Prev Day)
 
 Markets trade in negative zone throughout the day following weak global sentiments. The key benchmark indices edged lower in early trade, tacking weak Asian stocks. PSU OMCs rose as hike in petrol prices would improve finances of these companies. Shares of staterun manganese producer MOIL debuted at Rs 551, a 46.93% premium over the IPO price. Banking stocks fell ahead of Reserve Bank of India's mid-term monetary policy review. Markets made a slow recovery led by buying in IT stocks which rose on positive US retail sales data and after TCS won a multi-million dollar deal from Deutsche Bank. The intraday recovery witnessed in early trade soon gathered steam in mid-morning trade on reports that top Indian firms have paid higher advance tax. However, markets remained in the negative territory. Afternoon session saw further weakening of the markets as capital goods and consumer durables stocks edged lower. Interest rate sensitive realty stocks fell on worries that higher interest rates will crimp demand for residential and commercial properties. On the sectoral indices, Realty lost 3.66% and Banking lost 3.32%, while IT gained 1.55%. At the end, Sensex closed at 19,647.77 down by 151.42 points. It touched an intraday high of 19,817.61 and low of 19,571.43. Nifty ended at 5,892.30 down by 51.80 points. It made a high/low of 5,942.75 and 5,865.80 respectively.  
 
IndexLatest1 D Chg(%)YTD(%)
NSE Index (15 Dec 2010) 5892.30 -0.87 13.29
Sensex (15 Dec 2010) 19647.77 -0.76 12.50
Dow Jones Ind. .. (15 Dec 2010) 11457.47 -0.17 9.87
Nasdaq Composit.. (15 Dec 2010) 2617.22 -0.40 15.34
Hang Seng (15 Dec 2010) 22975.35 -1.95 5.04
Straits Times (15 Dec 2010) 3147.20 -0.94 8.61
FTSE 100 (15 Dec 2010) 5882.18 -0.15 8.67
CAC 40 (15 Dec 2010) 3880.19 -0.58 -1.43
SectorsClose1D Chg(%)
BSE IT 6398.67 1.51
BSEPSU 9346.44 -1.22
OILGAS 10647.96 -0.09
Advance Decline RatioValue(in Cr.)Index
0.43 1060.66 SENSEX
0.32 7089.53 NIFTY
   SENSEX    NIFTY
Top GainersClose1D Gain(%)YTD(%)
Tata Consultancy Services Ltd. 1101.25 1.93 46.88
Infosys Technologies Ltd. 3203.65 1.67 22.97
Tata Motors Ltd. 1320.20 1.26 66.57
Top GainersClose1D Gain(%)YTD(%)
Bharat Petroleum Corporation L... 703.35 4.08 10.67
Tata Consultancy Services Ltd. 1103.65 2.10 47.10
Infosys Technologies Ltd. 3203.45 1.42 23.16
Top LosersClose1D Loss(%)YTD(%)
Hero Honda Motors Ltd. 1621.30 -5.40 -5.54
DLF Ltd. 278.00 -5.15 -23.02
ICICI Bank Ltd. 1078.05 -3.65 23.11
Top LosersClose1D Loss(%)YTD(%)
Hero Honda Motors Ltd. 1621.55 -5.32 -5.60
DLF Ltd. 278.15 -5.17 -22.99
Suzlon Energy Ltd. 48.20 -3.98 -46.65
Top

Most Active Stocks by value (in Cr)

BSEClose%ChgValue(in Cr.)Volume
SBI 2792.70 -3.46 241.06 888265
Hero Honda 1713.85 -5.40 106.79 653114
Tata Steel 645.50 -0.46 105.65 1640454
Tata Motors 1303.80 1.26 83.00 635166
RIL 1052.60 -0.07 76.18 724613
 
NSEClose%ChgValue(in Cr.)Volume
SBI 2792.70 -3.39 830.25 3059475
ICICI Bank 1119.50 -3.64 519.77 4781060
RIL 1055.25 -0.13 515.62 4899915
Tata Motors 1305.95 1.30 472.29 3608508
Hero Honda 1712.75 -5.32 398.19 2425129
 
Strike Price Value Price %Chg
   Most Active Calls by Contract Value (in Cr)
TATASTEEL ( 30 Dec 2010 ) 660.00 12129.68 11.10 18.47
TATASTEEL ( 30 Dec 2010 ) 640.00 11645.23 19.30 15.54
   Most Active Puts by Contract Value (in Cr)
TATASTEEL ( 30 Dec 2010 ) 640.00 7408.23 16.80 -10.71
TATAMOTORS ( 30 Dec 2010 ) 1250.00 6915.75 17.90 16.76
   Most Active Future by Contracts Value (in Cr)
    International News
 
 
  • After reporting an unexpected deterioration in conditions for New York State manufacturers in November, the New York Federal Reserve released a report showing that regional manufacturing conditions improved in December. New York Fed's general business conditions index climbed to a positive 10.6 in December from a negative 11.1 in November.(RTT News)
  • The value of Canadian manufacturing shipments rose more than expected in October, following declines in three of the past four months. Bolstered by gains in petroleum products, metals and motor vehicle parts, manufacturing sales increased 1.7% in October to Canadian USD 45.5 billion. (RTT News)
  • The number of unemployed in Britain has hit 2.5 million after rising for the first time in six months, as economists predicted further gloom amid deep spending cuts. The jobless total rose by 35,000 in the three months to October to reach the landmark. (Economic Times)
 
 
    Domestic News
 
 
  • State-owned Bank of Baroda (BoB) said that it has entered into joint venture agreement with BBVA (Banco Bilbao Vizcaya Argentaria) of Spain to sell 51% stake in its credit card arm Bobcards. (Economic Times)
  • Amid the demand from Civil Aviation Ministry for induction of Rs 1,200 crore as fresh equity into Air India, Prime Minister Manmohan Singh said that the government is actively considering helping the national carrier. Along with the Air India, state-owned telecom firm BSNL is also likely to get the government support. (Business Standard)
  • ONGC Tripura Power Co (OTPC), a unit of state-owned Oil and Natural Gas Corp, has signed an MoU with Dhaka to open up a new transport corridor through Bangladesh for transporting heavy equipment for its power plant at Tripura. (Business Standard)
 
 
CurrencyExchange-Rate1D Chg(%)1M Chg(%)
EUR 60.27 -0.07 % -0.15 %
GBP 71.24 -0.25 % -0.52 %
USD 45.32 0.69 % -1.56 %
FIIs ActivityRs. Cr.MTDYTD
Equity in flows 2544.40 38456.90 739813.70
Equity Out flows 2450.10 39761.20 609902.10
Net 94.30 -1304.30 129911.70