Market Outlook 24th Dec 2010

Strong & Weak  Stocks

This is list of 10 strong stocks

Ispat Ind, Core Protect, Polaris, Asian Paints, Hexaware, Renuka, Wipro, FSL, HCL Tech & Infosys Tech. 

And this is list of 10 Weak stocks

 Ibrealest, Welcorp, Orbit Corp, Ashok Leyland, LIC Housing, SCI, Rel Infra, Escorts, Recltv & KFA.

The daily trend of nifty is in Down trend

Scripts to watch on 24th Dec. : ACC, Bhartiatl,  Bhel, DLF, HDFCBank, Hindalco, ICICIBank, KotakBank, L&T, M&M, Maruti, ONGC, Reliance, Sail, SBI, TataMotors, TataPower, Tisco, Wipro

Indices		Supp/Resis	1	2	3
	Nifty	Resistance	6002.77	6025.53	6044.62
		Support	5960.92	5941.83	5919.07
	Sensex	Resistance	20059.54	20136.20	20196.32
		Support	19922.76	19862.64	19785.98

Break Out !!: Intraday calls On the Basis of Break out System

(For Cash Segment only)       

Bhusan Buy above 469 472/476/480/484 Stop 458 

Bhusan Sell Below 450 446/442/437/432 Stop 458 

Break Out !!: Hindalco Buy above 236 238/240/242/244 Stop 233 

Hindalco Sell Below 231 228/226/224/222 Stop 233 

Break Out !!: McDowell Buy above 1466 1474/1480/1487/1494 Stop 1453 

McDowell Sell Below 1438 1430/1423/1417/1409 Stop 1453 

Sail Buy above 189 191/193/196/198 Stop 186 

Sail Sell Below 183 181/179/177/174 Stop 186 

Break Out !!: Tisco Buy above 667 671/674/678/681 Stop 661 

Tisco Sell Below 657 654/649/645/641 Stop 661 

RBI releases market feedback on new bank licenses discussion paper

RBI says 

-Companies, banks prefer Rs 1,000 crore start-up capital for new bank

-NBFCs prefer Rs 300-500 crore initial capital for new bank

-Companies prefer promoter shareholding of 40-51% in new banks

-NBFCs prefer promoter shareholding of 30-40% in new banks

-Response mixed on foreign shareholding in new banks

-Banks not in favour of new banks promoted by companies

-Markets worry banks promoted by companies may spur regulatory arbitrage

-Leading industry body against NBFCs converting into banks   

-Banks want only stand-alone NBFCs to promote new banks

-Banks don't favour co-promoted NBFCs becoming banks

-Market says no need to specify area of operations for new banks

Derivative Stratagy today on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-strategy-24-Dec-2010.htm

6,040 (50 Days simple moving average) while support stand at 5,950-5,916. On upside if level of 6,023 breached decisively then we could see rise up to mark of 6,080, on the lower side if level of 5,950 is breached then Nifty could retrace up to support of 5,916 mark. Short covering can be assumed in Realty and Banking stocks from lower supports of the Nifty at 5,950 levels. Short covering in these stocks could help Nifty to break stiff resistance 6,006-6,023. Fresh long position could be seen in Oil & Gas stocks after crude rallied above USD 91. Technical indicator MACD is supporting uptrend move. MACD showing positive divergence and crossing the signal line (9 Days exponential moving average) from the below, which is a bullish signal.

Tip for the day
	HINDDORROL (BUY) RSI is showing a reversal trend after a sharp correction. MACD is showing positive divergence. Stochastic is at 21 levels and it likely to give a buy crossover. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 113.70 BUY 115/117/120 109 100/130 AMTEK AUTO (SELL) RSI is in neutral territory at 54 levels and likely to show negative crossover. Stochastic has also just entered into oversold territory moving downward suggesting further downside. Wide correction is expected. MACD is likely to show bearish crossover. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 143.25 SELL 141/138/134 148 130/160 SAIL (SELL) RSI is at neutral territory at 48 levels and showing negative crossover moving towards oversold territory. Stochastic is moving in neutral territory showing negative crossover also indicating downside. Stock is also on the verge of crossing 34 Day EWMA. MACD is above zero line and expecting will show negative divergence. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 186.20 SELL 184/180/175 192 170/195 IRB (SELL) RSI is in the neutral zone at 44 levels, showing downtrend. Stochastic is moving in neutral territory showing negative crossover also indicating downside. Stock is moving below 08 day EWMA and showing correction. MACD is also showing downtrend and likely to cross mean line from above. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 215.35 SELL 213/208/203 220 200/230

US markets
	US markets closed flat as mixed batch of economic data prevented investors from changing their position ahead of Christmas holiday. Market remained choppy following mixed economic reports which include modest decline in weekly jobless claims, notable decrease in durable goods, lower than expected rise in new home sales and a largely inline consumer sentiment index. Markets opened flat after US weekly jobless claims fell by 3,000 to 4,20,000 for the week ended December 18, in-line with expectations. Sentiments remained subdued as report showed that durable goods orders fell by 1.3% in November following a revised 3.1% decrease in October. Later, Reuters and University of Michigan said that their consumer sentiment index for December was upwardly revised to 74.5. Meanwhile, Commerce Department also revealed new home sales data which showed an increase of 5.5% to an annual rate of 2,90,000 in November.

European markets
	European markets closed mixed in quiet trade ahead of Christmas. Mining sector declined as investors booked profit after metal prices fell. Construction related stocks were also weak. Scandinavian carrier SAS surged close to 15% on reports that Lufthansa is planning to take over the company. Rio Tinto fell after company offered to acquire Australian coking coal miner Riversdale Mining for AUD 16 per share in cash, valuing the target company at about AUD 3.9 billion. Allied Irish Banks PLC plunged as the government effectively took control of the ailing financial group.

Indian markets (Prev Day)
	Indian markets witnessed a day of volatile trading as lack of positive global trigger led to uncertainty among investors. The key benchmark indices pared gains after a positive start buoyed by favourable economic data in the US. Realty and IT stocks gained in early trade. The market bounced back to hit a fresh intraday high in morning trade but once again slipped into the red amid macroeconomic worries caused by a surge in global crude oil to above USD 90 a barrel level. Indices alternatively moved between positive and negative zone in mid-morning trade, skidding to hit fresh intraday lows in early afternoon trade as the latest data showed jump in food inflation. However, markets pared losses as index heavyweight Reliance Industries moved higher. Last hour of trading saw the indices swaying between red and green territories. CD (down 1.11%), auto(down 0.83%) and metal(down 0.97%) stocks dragged the markets down, which was offset by gains in HC (up 0.69%), IT (up 0.27% ) and Bank (up 0.06%). At the end, Sensex closed at 19,982.88 down by 32.92 points. It touched an intraday high of 20,076.08 and low of 19,939.30. Nifty ended at 5,980.00 down by 4.40 points. It made a high/low of 6,006.45 and 5,964.60 respectively.

Index Latest 1 D Chg(%) YTD(%) NSE Index (23 Dec 2010) 5980.00 -0.07 14.98 Sensex (23 Dec 2010) 19982.88 -0.16 14.42 Dow Jones Ind. .. (23 Dec 2010) 11573.49 0.12 10.98 Nasdaq Composit.. (23 Dec 2010) 2665.60 -0.22 17.47 Hang Seng (23 Dec 2010) 22902.97 -0.62 4.71 Straits Times (23 Dec 2010) 3137.78 -0.21 8.29 FTSE 100 (23 Dec 2010) 5996.07 0.21 10.77 CAC 40 (23 Dec 2010) 3911.32 -0.21 -0.64 Sectors Close 1D Chg(%) BSE IT 6681.39 0.27 BSEPSU 9340.94 -0.31 OILGAS 10640.56 -0.14 Advance Decline Ratio Value(in Cr.) Index 0.50 539.39 SENSEX 0.67 4301.17 NIFTY

SENSEX    NIFTY Top Gainers Close 1D Gain(%) YTD(%) NTPC Ltd. 195.75 1.50 -16.95 Sterlite Industries (India) Lt... 180.15 0.95 -16.37 Infosys Technologies Ltd. 3362.50 0.77 29.07 Top Gainers Close 1D Gain(%) YTD(%) Sun Pharmaceutical Industries ... 452.95 5.04 50.10 Sesa Goa Ltd. 309.40 1.56 -24.68 NTPC Ltd. 195.75 1.53 -16.93 Top Losers Close 1D Loss(%) YTD(%) Hindalco Industries Ltd. 233.70 -1.81 45.38 Tata Steel Ltd. 661.55 -1.61 7.12 DLF Ltd. 281.45 -1.26 -22.07 Top Losers Close 1D Loss(%) YTD(%) Steel Authority of India (SAIL... 186.20 -4.66 -22.96 Hindalco Industries Ltd. 233.75 -1.83 45.32 Tata Steel Ltd. 661.35 -1.72 7.07

Top

Most Active Stocks by value (in Cr) BSE Close %Chg Value(in Cr.) Volume SBI 2744.95 0.15 89.30 324530 Tata Steel 672.40 -1.61 69.78 1049496 ICICI Bank 1131.15 -0.06 43.53 383892 RIL 1057.05 0.10 39.68 375097 InfosysTechn 3336.90 0.77 37.97 113006   NSE Close %Chg Value(in Cr.) Volume RIL 1056.05 0.32 353.14 3335014 Tata Steel 672.90 -1.72 340.66 5126417 SBI 2744.95 0.05 329.78 1198836 Tata Motors 1365.15 -0.91 275.31 2039011 InfosysTechn 3332.50 1.06 261.78 778938   Strike Price Value Price %Chg    Most Active Calls by Contract Value (in Cr) NIFTY ( 30 Dec 2010 ) 6000.00 1061829.98 44.50 20.45 NIFTY ( 30 Dec 2010 ) 6100.00 616358.82 11.85 43.88    Most Active Puts by Contract Value (in Cr) NIFTY ( 30 Dec 2010 ) 6000.00 814120.08 49.15 11.29 NIFTY ( 30 Dec 2010 ) 5900.00 641056.87 19.25 28.05    Most Active Future by Contracts Value (in Cr) TATASTEEL ( 30 Dec 2010 ) - 80362.91 663.10 1.33 TATAMOTORS ( 30 Dec 2010 ) - 79669.30 1349.20 1.36     Commodities     Crude Oil prices surged above USD 91 a barrel to its highest price as OPEC member Libya's apparent lack of concern over prices prompted some analysts to call for a new year's run at USD100. Gold prices pared early losses and ended above USD 1,380 by the end of New York's holiday-shortened week as the euro rebounded.         International News     Canada's economy picked up in October, snapping back from a lackluster performance in the previous month. Real gross domestic product increased 0.2% in October following a 0.1% decline in September, according to figures released by Statistics Canada on Thursday (Rtt News) New home sales in the U.S. showed a notable increase in the month of November, according to a report released by the Commerce Department on Thursday, although sales came in below economist estimates due in part to a downward revision to October sales.(Rtt News) Fitch Ratings on Thursday downgraded Hungary's credit rating to the lowest investment grade, citing the country's worsening budget positions. Hungary's long-term foreign currency issuer default rating was cut to 'BBB-' from 'BBB' and its long-term local currency IDR to 'BBB' from 'BBB+'(Rtt News)         Domestic News     Telecom service provider Bharti Airtel on Thursday said that it has set up a direct underground terrestrial link between India and China in association with China Telecom to offer robust network and uninterrupted connectivity to their customers in the two countries. (Hindustan Times) Coal India said that its production will fall short of target by 16 million tonnes this fiscal and may miss the expected output by 39 million tonnes in 2011-12 due to extension of tough environmental norms. (Business Standard) Quatrro BPO Solutions is betting big on mid-market segments for driving growth and is on the lookout for acquisitions in North America to strengthen its portfolio. (Business Standard)     Currency Exchange-Rate 1D Chg(%) 1M Chg(%) EUR 59.12 -0.34 % -2.05 % GBP 69.42 -0.69 % -3.06 % USD 45.02 -0.24 % -2.22 % FIIs Activity Rs. Cr. MTD YTD Equity in flows 2403.00 53277.80 754634.60 Equity Out flows 2426.60 54537.00 624677.90 Net -23.60 -1259.20 129956.80