Market Outlook 21st Dec 2010

Scripts to watch on 21^th Dec. : AxisBank, Bhartiatl, Biocon,  Bhel, HDFCBank, ICICIBank, KotakBank, L&T, M&M, Maruti, ONGC, Rcom, Reliance, RelInfra, SBI, TataPower, Tisco, Wipro

• Supp / Resis SPOT/CASH LEVELS

Indices		Supp/Resis	1	2	3
	Nifty	Resistance	5987.95	6028.85	6072.70
		Support	5903.20	5859.35	5818.45
	Sensex	Resistance	20026.32	20163.76	20321.36
		Support	19731.28	19573.68	19436.24

Strong & Weak  

This is list of 10 strong stocks

Ispat Ind, Hexaware, Core Protect, Hero Honda, Polaris, TCS, Wipro, Mphasis, Infosys & HCL Tech. 

And this is list of 10 Weak Stocks

 India Info, Welcorp, Ibrealest, LIC Housing, Escorts, Indus Ind Bank, SCI, Uco Bank, HDIL & Jindal SWHL.

The daily trend of nifty is in Down trend 

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

HDFCBank Buy above 2186 2194/2204/2214/2224 Stop 2172

HDFCBank Sell Below 2147 2136/2126/2117/2107 Stop 2172

Break Out !!: Infosys Buy above 3371 3380/3389/3399/3409 Stop 3350

Infosys Sell Below 3319 3311/3301/3291/3281 Stop 3350

McDowell Buy above 1481 1489/1499/1509/1519 Stop 1466

McDowell Sell Below 1452 1446/1438/1429/1417 Stop 1466

Break Out !!: Infosys Buy above 3371 3380/3389/3399/3409 Stop 3350

Infosys Sell Below 3319 3311/3301/3291/3281 Stop 3350

McDowell Buy above 1481 1489/1499/1509/1519 Stop 1466

McDowell Sell Below 1452 1446/1438/1429/1417 Stop 1466

Market Outlook
	Yesterday, after opening and trading lower during the early morning trade, Nifty later made a smart recovery and touched psychological level 5,980. However, in the last hour of trading, it came off from day's high and closed at 5,947.05. Today, market is likely to open gap up on positive global sentiments. US markets closed mixed for the second day in low volume trade while markets in Asia were in green on higher commodity prices. Easing of tensions between the two Korean nations also supporting the gains. Resistance for Nifty now seems at 5,980-6,031 while support stand at 5,908-5,852. On upside if level of 5,980 breached decisively then we could see rise up to mark of 6,031 (50 Days simple moving average), on the lower side if level of 5,908 (20 Days simple moving average) is breached then Nifty could retrace up to support of 5,852 mark. Bullish Trend can only be confirmed if Nifty trades above 6,031 level. Indian market is likely to move with positive sentiments in near term. The Q3 advance tax figures saw an overall increase of 15-20% year-on-year. Further, RBI maintained key rates in its mid-quarter policy review and announced the purchase of Rs 48,000-crore government securities through open market operations (OMO), besides reducing SLR by 100 basis points to 24%. These measures are expected to ease the tight liquidity scenario. Fresh long positions can be assumed in metals, Oil & Gas and sugar stocks from current levels or from lower supports of the Nifty at 5,908 levels. Short Covering can also be assumed Realty and Banking stocks if the Nifty holds the levels 5,950 on the upside. Recovery could be seen in the mid caps, small caps and power sector shares as they are likely to catch up with the rest of the market.

Tip for the day
	HERO HONDA (BUY) RSI is at 61 neutral territory showing positive crossover indicating uptrend. Stochastic is moving in oversold 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 1900 levels with good volumes indicating that it will move upwards from here. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 1,980.50 BUY 2,000/2,020/2,060 1,955 1,900/2,100 ARSHIYA INTERNATIONAL (BUY) RSI is at 49 neutral territory showing positive crossover. MACD is likely to show positive divergence. Stock next resistance level seems at 270 if its break then stock could risel up to 280. Stochastic is moving in overbought zone showing positive crossover. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 265.80 BUY 269/273/277 260 250/280 UNITED BREWERIES (BUY) RSI is at 71 level, indicating more buying. MACD is showing positive divergence. Stochastic is hovering in overbought zone showing positive crossover. Today stock close near to 52 week high supported with volume indicating further upside. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 482.20 BUY 487/495/500 473 460/510 DB REALTY (SELL) Stochastic is moving in oversold zone showing negative crossover. MACD is showing bearish crossover. Wide correction is expected. RSI is in profit booking phase. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 185.40 SELL 183/179/175 190 170/200
Derivative Stratagy on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-strategy-21-Dec-2010.htm

US markets
	US Stocks recovered from their early losses and ended on a mixed note as some economic optimism drove buying interest. Nonetheless, a full on rally was prevented by the day's weak volume and a lack of economic reports. The major averages slipped further off of their best levels late in the session, ending on a mixed note. While no major economic reports were released on the day, the data flow picks up later in the week. Reports on new and existing home sales, durable goods orders, personal spending and third quarter GDP data are all due on Wednesday and Thursday. Meanwhile, some movement among individual stocks was driven by a batch of corporate news. Canadian firm Talisman Energy (TLM) rose on news of the company selling a 50% working interest in its Farrell Creek assets to South African firm Sasol for approximately USD 1 billion. Talisman gained 4.6%, ending the day at its best closing level in over two years.

European markets
	European stocks hit a 27-month closing high with miners rising on buoyant metal prices. Firm commodity prices and hopes of a global economic recovery helped underpin sentiment. In economic news, the European Commission said its preliminary consumer-confidence indicator for the euro zone fell to -11 in December from -10 in November. Economists had forecast an increase to -9. The Conference Board said its index of leading indicators for France edged up 0.1% in October, following a 0.8% increase in the previous month. Car maker Volkswagen rose 2.7%. BMW added nearly 2% and Peugeot moved up 0.8%.

Indian markets (Prev Day)
	The domestic bourses ended flat after witnessing a volatile session. The market started off the session on a weak note, as the benchmark indices plunged deep below the baseline tracking weak Asian cues. Soon after the weak start, the market dragged further, before taking support near the 5,900 level on Nifty. As the day progressed the benchmark indices advanced northwards, paring all the morning gains, backed by the Auto sector. The market made new session high near the 5,990 mark on Nifty but profit booking occurred during the final hour of trade as all the gains were erased. Though the market closed near the baseline, well above the morning lows, but all the intraday gains were also pared off. The final hour hammering came as the Banking and realty space plunged significantly. In the sectorial front, the Auto space remained in limelight following a 17.99% surge in two wheeler giant, Hero Honda Motors. The sector gained by 2.30% during yesterday's trade, followed by the IT space which advanced by 1.73%. However, the Banking and Realty sectors played the spoilsport, pulling the market towards the end, declining by 1.39% and 1.37% respectively. Both the Nifty and Sensex traded volatile throughout the session and closed mixed towards the end. . At the end, Sensex closed at 19,888.88 up by 24.03 points. It touched an intraday high of 20,006.16 and low of 19,711.12. Nifty ended at 5,947.05 down by 1.70 points. It made a high/low of 5,985.00 and 5,900.25 respectively.

Index Latest 1 D Chg(%) YTD(%) NSE Index (20 Dec 2010) 5947.05 -0.03 14.34 Sensex (20 Dec 2010) 19888.88 0.12 13.88 Dow Jones Ind. .. (20 Dec 2010) 11478.13 -0.12 10.07 Nasdaq Composit.. (20 Dec 2010) 2649.56 0.25 16.76 Hang Seng (20 Dec 2010) 22639.08 -0.33 3.50 Straits Times (20 Dec 2010) 3132.96 -0.64 8.12 FTSE 100 (20 Dec 2010) 5891.61 0.34 8.84 CAC 40 (20 Dec 2010) 3885.08 0.46 -1.30 Sectors Close 1D Chg(%) BSE IT 6690.72 1.70 BSEPSU 9307.39 -0.81 OILGAS 10646.86 -0.27 Advance Decline Ratio Value(in Cr.) Index 0.76 1004.06 SENSEX 0.72 7312.39 NIFTY

SENSEX    NIFTY Top Gainers Close 1D Gain(%) YTD(%) Hero Honda Motors Ltd. 1981.20 17.99 15.42 Cipla Ltd. 365.65 2.55 8.95 Maruti Suzuki India Ltd. 1414.45 2.37 -9.31 Top Gainers Close 1D Gain(%) YTD(%) Hero Honda Motors Ltd. 1980.50 17.77 15.30 Maruti Suzuki India Ltd. 1414.85 2.67 -9.31 Cipla Ltd. 365.75 2.54 9.16 Top Losers Close 1D Loss(%) YTD(%) Bharti Airtel Ltd. 335.10 -2.46 1.92 NTPC Ltd. 192.90 -2.43 -18.16 Reliance Infrastructure Ltd. 810.80 -2.14 -29.31 Top Losers Close 1D Loss(%) YTD(%) Dr. Reddy's Laboratories Ltd. 1704.20 -4.73 48.63 Kotak Mahindra Bank Ltd. 449.90 -3.09 11.50 Axis Bank Ltd. 1270.90 -2.94 28.48

Top

Most Active Stocks by value (in Cr) BSE Close %Chg Value(in Cr.) Volume Hero Honda 1679.10 17.99 289.48 1508491 SBI 2761.85 -2.11 137.69 507401 Tata Steel 658.85 0.86 98.39 1480123 Tata Motors 1347.95 -0.28 73.57 546825 InfosysTechn 3292.30 1.78 54.58 163774   NSE Close %Chg Value(in Cr.) Volume Hero Honda 1681.70 17.77 1178.52 6157352 SBI 2762.95 -2.26 672.88 2481045 InfosysTechn 3293.30 1.72 472.15 1418290 Tata Steel 660.40 0.91 431.50 6483762 RIL 1056.85 -0.01 383.63 3624895   Strike Price Value Price %Chg    Most Active Calls by Contract Value (in Cr) NIFTY ( 30 Dec 2010 ) 6000.00 1234744.29 52.10 12.67 NIFTY ( 30 Dec 2010 ) 5900.00 808342.03 105.75 8.79    Most Active Puts by Contract Value (in Cr) NIFTY ( 30 Dec 2010 ) 5900.00 1014864.59 49.40 0.40 NIFTY ( 30 Dec 2010 ) 5800.00 650249.79 26.20 2.29    Most Active Future by Contracts Value (in Cr) HEROHONDA ( 30 Dec 2010 ) - 115226.67 1975.35 -14.65 TATASTEEL ( 30 Dec 2010 ) - 87119.67 665.10 -0.69     International News     UK's gross mortgage lending dropped to its lowest November level in a decade. Gross lending fell 10% year-on-year to GBP 11.1 billion in November. This was 5% lower than the GBP 11.6 billion approved in October.(RTT News) Portuguese producer price inflation slowed to 4.5% in November from 4.6% in October.A year earlier, producer prices slipped 1.6%. Month-on-month, producer prices rose 0.4%. Producer prices in manufacturing industry increased 4.1%, slower than a 4.2% rise in October. On a monthly basis, manufacturing prices grew 0.5%. (RTT News) The Confederation of British Industry (CBI) downgraded its UK economic growth forecast for the first quarter of 2011 to 0.2% on Monday. The Bank of England would begin to normalise monetary policy in the spring, with interest rates rising gently through to mid-2012. It would be followed by a slightly faster stimilus withdrawl over the second half, taking the Bank rate from a record low of 0.5% to 2.75% by the fourth quarter of 2012. (Economic Times)         Domestic News     Lanco Infratech Ltd said that it has secured a debt of Rs 55.49 bn from a consortium of banks for the 1,320 MW thermal power project, being developed by its unit Lanco Vidarbha Thermal Power Ltd, in Maharashtra. The project, estimated to cost Rs 69.36 bn, would be financed with Rs 55.49 bn of debt and equity of Rs 13.87 bn, it said in a statement. (Moneycontrol) Gujarat plans to treble its cement production capacity in 3-5 years. Proposals have been invited from cement companies like ACC , ABG, Ambuja Cement, Emami, Indiabulls, Adani group, Ultratech and L&T and the state hopes to raise its capacity from 20 million tonnes per annum to 70 million tonne. (Economic Times) The GenNext mobile services -- 3G -- which includes video calling facility may take sometime to hit market as government has asked leading telecom operators Tata Teleservices and RCom to stop it till they adhered to security norms for its legal interception. (Business Standard)     Currency Exchange-Rate 1D Chg(%) 1M Chg(%) EUR 59.77 -1.19 % -0.98 % GBP 70.43 -0.63 % -1.66 % USD 45.38 0.07 % -1.43 % FIIs Activity Rs. Cr. MTD YTD Equity in flows 3220.20 44761.10 746117.90 Equity Out flows 3333.60 46188.80 616329.70 Net -113.40 -1427.70 129788.30