Market Outlook for 06.01.08

Delisting offer rumoured from Ingersoll Rand at Rs 400 per share..between Monday and Tuesday 50,000 shares acquired from open markets by insiders...bse 500210..buy with a stop loss of Rs 220.

Headlines for the day
Corporate News Headline
Sun Pharma raised its offer by as much as 23% to buy the residual stake of Taro Pharmaceutical Industries. (BS)
BGR Energy raised Rs. 21.05 bn of loan for its working capital requirements from a consortium of five banks, led by public sector giant State Bank of India. (BS)
IVRCL Infrastructure & Projects bagged four orders worth Rs. 2.61 bn from Bangalore Metro Rail Corporation, IOC, and Karnataka Urban Water Supply and Drainage Board. (BS)

Economic and Political Headline
The Planning Commission Deputy Chairman Montek Singh Ahluwalia said that the government will focus on utilisation of refinance facility extended to India Infrastructure Finance Company to provide Rs. 750 bn for the infrastructure sector projects with a view to arrest economic slowdown. (BS)
There is good news in store for companies and other borrowers as the government has directed the PSU banks to lend in the next three months Rs. 560 bn, over and above their existing disbursement target. (ET)
President-elect Barack Obama's economic stimulus package will include hundreds of billions of dollars worth of tax breaks for individuals and businesses. (Bloomberg)

	3125.75	( 0.14 %)	4.30
		1	2	3
Resistance		3150.12	3178.78	3225.62
Support		3074.62	3027.78	2999.12

	10317.85		( 0.41 %)	42.25
			1	2	3
Resistance			10364.81	10454.02	10601.87
Support			10127.75	9979.90	9890.69

Strong & Weak futures
This is list of 10 strong futures:
India info., Dena Bank, Mosear Baer, IFCI, Strtech, Geship, Bajaj Hind, Nagar Const & Indusind Bank.
And this is list of 10 Weak Futures:
Satyam, Bhushan Steel, Sterlin Bio, Rolta, Rendington, TVS Motors, Sunpharma, CMC, Bharti Airtel & Hind Uni Lvr.
Nifty is in Up Trend.


NIFTY FUTURES (F & O)
Below 3110 level, expect profit booking up to 3081-3083 zone and thereafter slide may continue up to 3054-3056 zone by non-stop.
Hurdle at 3130-3132 zone. Above this zone, rally may continue up to 3148 level.
Cross above 3175-3177 zone, expect a jump up to 3202-3204 zone and supply expected at around this zone and this supply should get absorbed too.
On Negative Side, rebound expected if touches 3010-3012 zone on down side. Stop Loss at 2983-2985 zone.

Short-Term Investors:
Short-Term trend is Bullish and target at around 3202 level on upper side.
On Negative Side, corrections up to 2821 level can be used to buy. Maintain a Stop Loss at 2694 level for your long positions too.

BSE SENSEX
Technically recovery should continue.

Short-Term Investors:
Trend is Bearish, but SL triggered and it closed at above 10173 level yesterday. 3 Closes at above 10173 level can create short covering up to 10844 level by non-stop.
Support at 10173 level. 3 closes below this level, can take it up to 9503 level.

Trading Calls 06th Jan 09

+ve sectors & scripts : CNX500, Bank, Midcap50, Bomdyeing, corpbank, JPAssociat,MahSeaml es , Orchid

USE STRICT Stop Loss for todays trading

BUY ABB-512 for 540 with sl 507 [Trading]

BUY LITL-173 for 180-183 with sl 170

BUY APIL-273 for 280-283 with sl 270 [Breakout]

BUY RIL-1365 for 1410-1418 with sl 1355

BUY Adlabs-201 above 206 for 230 with sl 200 [Expected Breakout]

BUY RELinfra-666 above 671 for 690-707 with sl 665

BUY IFCI-26.52 for 30 with sl 25 [Positional]

BUY L&T-857 for 890-898, 936 with sl 845

BUY STER-301 for 332 with sl 295

GLOBAL CUES & RUPEE
The Dow Jones Industrial Average closed at 8,952.89. Down by 81.80 points.
The Broader S&P 500 closed at 927.45. Down by 4.35 points.
The Nasdaq Composite Index closed at 1,628.03. Down by 4.18 points.
The partially convertible rupee <INR=IN> closed at 48.56/58 per dollar on yesterday, stronger than from its Friday's close of 48.58/60.
SENSEX Stocks May Zoom

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
FII	05-Jan-2009	1714.63	1245.07	469.56

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	05-Jan-2009	982.13	761.31	220.82

--
Arvind Parekh
+ 91 98432 32381