Market Outlook 13th Janb 2011

Scripts to watch on 13^th  Jan. :ACC, Ambujacem, Bhartiatl,  Bhel, Bajaj-Auto, DLF, HDFCBank,  ICICIBank, IDFC, Infosys, M&M, Maruti, ONGC, Reliance, RelCap, SBI, TataMotors, TataPower, Tisco,  Bajaj-Auto, DrReddy, HDFC,Siemens, SesaGoa,

Market Outlook
	Yesterday, market overlooked disappointing industrial production data and rallied more than 100 points to close at 5,863.25. Nifty is still trading below the short term (20 DMA, 50 DMA and 100 DMA) moving averages placed at 5,989, 6,003 and 5,945 levels; may act as resistance. Today, Indian market is likely to open positive note following positive clues from global markets. Global markets gained as Portugal successfully sell debt at the top end of its range, easing concerns that the country will soon need a financial bailout. On upside, if Nifty breached level of 5,880 decisively then we could see rise up to the mark of 5,940. On the lower side, if level of 5,820 breaches then Nifty could go down to support of 5,750 mark. Indian IT major Infosys will announce results today and it is expected that the company may raise earnings forecast with the improving growth outlook for US. Indian markets underperformed major global markets over the last few trading sessions. Interest rate sensitive sectors like banking, realty and automobile witnessed maximum selling pressure, amidst fears that rising inflation could stoke another round of interest rate hikes. However, the advance tax numbers were encouraging for the third quarter, clearly reflecting the continued good showing of Indian companies. Higher advance tax payment from Indian companies could lift the buying sentiment in market from this level.

Derivatives EOD report on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-strategy-13-Jan-2011.htm

NFUT CL 5874 SGX 5881) PRE MARKET CALL FOR 13 JAN TRADE IN GIVEN EXPECTED TRADING RANGE 5841-5941. LEVEL C/F 5902.

Gap up Short Mcdowell-N @ 1343 cover 1281 sl 1360, Gap down Buy Axis bank @ 1305 trgt 1335sl 1293

long Buy Areva T&D @ 314 trgt 323 sl 309.

• Supp / Resis SPOT/CASH LEVELS FOR INTRADAY

Indices		Supp/Resis	1	2	3
	Nifty	Resistance	5921.20	5979.15	6084.10
		Support	5758.30	5653.35	5595.40
	Sensex	Resistance	19722.97	19911.83	20249.04
		Support	19196.90	18859.69	18670.83

Strong & Weak 

This is list of 10 strong

Jindal Saw, Hexaware, Praj Ind, Hind Zinc, HCL Tech, Sesa Goa, Bata India, Glaxo, Indian Hotel & Ispat Ind. 

And this is list of 10 Weak 

Syndicate Bank, HDIL, JSW Steel, LIC Housing, Patel Eng, Orbit Corp, Bajaj Auto, MLL, GMR Infra & IOC.

The daily trend of nifty is in Down trend 

UFLEX (BUY)

• Stochastic is at 28 levels and it has given a buy crossover.
• RSI is showing a reversal trend after a sharp correction.
• MACD is above zero line with a positive divergence.

CMP	Buy/Sell	Target Price	Stop Loss	Support/ Resistance
193.50	BUY	196/200/205	188	160/220

TTK PRESTIGE (BUY)

• RSI is at 51 neutral territory showing positive crossover indicating uptrend.
• MACD showing bullish trend.
• Stochastic is trading in over sold territory at 20 on the brink of entering into positive territory.

CMP	Buy/Sell	Target Price	Stop Loss	Support/ Resistance
1,544.50	BUY	1,560/1,580/1,600	1,520	1,460/1,640

KIRIDYES (BUY)

• The stock has rebounded after undergoing a deep correction and has breached its resistance at 380 levels with good volumes indicating that it will move upwards from here.
• MACD is likely to show bullish crossover.
• RSI is at 36 level, indicating more buying.

CMP	Buy/Sell	Target Price	Stop Loss	Support/ Resistance
385.20	BUY	389/396/405	377	350/430

ORCHID CHEMICALS (BUY)

• RSI is showing a reversal trend after a sharp correction.
• Stock is also on the verge of crossing 34 Day EWMA.
• MACD is above zero line with a positive divergence.

CMP	Buy/Sell	Target Price	Stop Loss	Support/ Resistance
292.35	BUY	295/300/305	285	260/315

US markets
	US stocks finished higher as investors reacted to positively to a successful Portuguese bond auction and an upbeat Beige Book report from the Federal Reserve helped to sustain buying interest. In its Beige Book report released, the Fed stated that employment conditions in the majority of the country "appear to be firming". The report indicated that companies were now hiring employees beyond replacements for vacancies in the wake of the recession. The Fed also said US economic activity has continued to expand moderately in recent months. Earlier, markets rose after news that the Portuguese government successfully sold approximately USD 1.6 billion which is scheduled to mature between 2014 and 2020. In corporate news, Chevron also announced that it expects its fourth-quarter earnings to be higher compared to the previous quarter.

European markets
	European markets gained after a successful bond auction by Portugal eased concerns that the nation would need a financial bailout. Banks and mining stocks led the advance, while utilities and oil producers lagged. In economic news, the UK's goods trade deficit widened in November to a seasonally adjusted GBP 8.7 billion from GBP 8.6 billion in the previous month. Total exports grew 4.1% to GBP 23.6 billion and imports rose 3.4% to GBP 32.4 billion. Eurozone industrial production rose 7.4% year-on-year in November, following a 7.1% growth in October. French current account deficit widened to EUR 4.2 billion in November from EUR 2.8 billion in October.

Indian markets (Prev Day)
	The domestic bourses marked an end to the six straight sessions of losses, as the benchmark indices surged substantially, supported by Realty, Metal, Banking and Auto space. The market started off the session on a bullish note, carrying forward the previous session's last thirty minutes upward momentum, amidst strong global cues. All the Asian stocks were trading positive, sending the MSCI Asia Pacific Index to its first advance in four days, as higher oil and metal prices buoyed commodity shares and a weaker yen boosted the outlook for Japanese export earnings. Moreover, the European stock markets opened higher, boosted by a report that the European Union is discussing plans to expand the €440 billion bailout fund for indebted euro-zone countries to contain the debt crisis.

Index Latest 1 D Chg(%) YTD(%) NSE Index (12 Jan 2011) 5863.25 1.90 -4.42 Sensex (12 Jan 2011) 19534.10 1.76 -4.75 Dow Jones Ind. .. (12 Jan 2011) 11755.44 0.72 1.54 Nasdaq Composit.. (12 Jan 2011) 2737.33 0.75 3.18 Hang Seng (12 Jan 2011) 24125.61 1.54 4.73 Straits Times (12 Jan 2011) 3244.94 0.11 1.72 FTSE 100 (12 Jan 2011) 6050.72 0.61 2.56 CAC 40 (12 Jan 2011) 3945.07 2.15 3.69 DAX (12 Jan 2011) 7068.78 1.83 2.24 Sectors Close 1D Chg(%) BSE IT 6672.28 1.64 BSEPSU 8973.98 0.50 OILGAS 10237.78 1.18 Advance Decline Ratio Value(in Cr.) Index 2.75 1269.67 SENSEX 6.14 8709.68 NIFTY

SENSEX    NIFTY Top Gainers Close 1D Gain(%) YTD(%) Sterlite Industries (India) Lt... 183.05 6.49 -1.90 Tata Motors Ltd. 1216.40 4.83 -6.88 ICICI Bank Ltd. 1068.90 4.47 -6.62 Top Gainers Close 1D Gain(%) YTD(%) Suzlon Energy Ltd. 53.65 12.95 -1.92 Sterlite Industries (India) Lt... 183.05 7.08 -1.93 Tata Motors Ltd. 1218.00 5.18 -6.91 Top Losers Close 1D Loss(%) YTD(%) Bajaj Auto Ltd. 1286.70 -1.52 -16.53 Larsen & Toubro Ltd. 1759.90 -1.43 -11.07 Hindustan Unilever Ltd. 305.00 -1.29 -2.34 Top Losers Close 1D Loss(%) YTD(%) Bajaj Auto Ltd. 1286.95 -1.44 -16.49 Larsen & Toubro Ltd. 1760.15 -1.14 -11.07 Hindustan Unilever Ltd. 304.90 -0.99 -2.56

Top

Most Active Stocks by value (in Cr) BSE Close %Chg Value(in Cr.) Volume SBI 2611.80 2.03 288.19 1096326 Tata Steel 647.60 0.26 167.76 2615154 ICICI Bank 1023.20 4.47 118.90 1133387 Tata Motors 1160.30 4.83 110.45 921986 L&T 1785.50 -1.43 109.36 623954   NSE Close %Chg Value(in Cr.) Volume SBI 2612.85 2.18 1099.84 4176981 ICICI Bank 1022.95 4.55 717.76 6864148 Tata Motors 1158.05 5.18 573.23 4783793 L&T 1780.45 -1.14 570.60 3261251 Tata Steel 646.55 0.36 547.53 8540118   Strike Price Value Price %Chg    Most Active Calls by Contract Value (in Cr) NIFTY ( 27 Jan 2011 ) 5900.00 1662326.63 81.15 -39.99 NIFTY ( 27 Jan 2011 ) 5800.00 1635120.82 138.00 -37.50    Most Active Puts by Contract Value (in Cr) NIFTY ( 27 Jan 2011 ) 5700.00 1872095.81 38.80 113.66 NIFTY ( 27 Jan 2011 ) 5800.00 1643482.01 64.35 87.41    Most Active Future by Contracts Value (in Cr) SBIN ( 27 Jan 2011 ) - 208915.06 2676.30 -2.17 TATASTEEL ( 27 Jan 2011 ) - 119531.74 647.70 -0.21     Commodities     Crude oil rose after production shutdowns, falling US inventories and growing demand sent crude to multi-year highs and closer to USD 100 a barrel. Gold firmed to settle above USD 1,385 as the dollar fell for the third day against the euro as a successful Portuguese bond auction soothed some concern over the euro zone's finances.         International News     New home prices in Canada climbed by a stronger-than-expected 0.3% in November from October for a fourth consecutive gain, according to Statistics Canada data released on Wednesday. (Reuters) American International Group will sell its Taiwanese life insurance operations for USD 2.16 billion, a step that will help the insurer to raise funds to repay the US taxpayers. Nan Shan Life Insurance Company would be sold to Ruen Chen Investment Holding Co in an all-cash deal. Ruen Chen is 80 per cent owned by Taiwan-based conglomerate Ruentex Group while the remaining stake is with footwear manufacturer Pou Chen Corp. (Economic Times) Industrial producer prices in Macedonia's domestic market rose 9% year-on-year in December. The price growth was largely driven by a 15.5% surge in factory prices in energy industry. Prices in intermediate goods industries, excluding energy, increased 5.9%. (RTT News) Japan's core private-sector machinery orders unexpectedly slumped by a seasonally adjusted 3.0% in November, hit mainly by a slump in orders from mobile carriers and financial firms. The November m/m decline was followed the 1.4% drop in October. (Automated Trader) The number of people with jobs in Australia rose by 2,300 in seasonally adjusted terms in December. The below-par employment growth was more than offset by a drop in the participation rate, the proportion of the working-age population active in the labour market, to 65.8% from the all-time high of 66% in November. (Sky News)         Domestic News     The Gujarat government on Wednesday said it has got investment commitments totalling nearly Rs. 15 lakh crore on the first day of industrial 'mela' Vibrant Gujarat reflecting the state's pristine position as a corporate destination. (NDTV Profit) Low-cost carrier IndiGo has placed firm orders for 180 Airbus 320 aircraft at an estimated cost of USD 15.6 billion. The order is the single largest for jets, in terms of volume, to be ever placed in the commercial aviation history. (The Times of India) IT firm Cognizant said that it will expand its delivery center in Phoenix, US to accommodate over 1,000 employees from the existing 500-seater capacity. Cognizant had recently announced crossing the 100,000-employee mark and continues to hire aggressively within North America as well as Europe, Asia, South America, and Australia. (Business Standard)     Currency Exchange-Rate 1D Chg(%) 1M Chg(%) EUR 58.68 -0.03 % -1.89 % GBP 70.64 0.14 % 1.96 % USD 45.16 -0.35 % 0.78 % FIIs Activity Rs. Cr. MTD YTD Equity in flows 2738.10 21190.10 21190.10 Equity Out flows 3861.70 22848.90 22848.90 Net -1123.60 -1658.80 -1658.80