Market Outlook 14th Dec 2010

Scripts to watch on 14^th Dec. : AxisBank, Bhartiatl, Biocon, Bhel, Cairn, HDFCBank, HeroHonda, ICICIBank, L&T, M&M, ONGC, Rcom, Reliance, RelInfra, SBI, TataMotors, Tisco, Wipro

Strong & Weak  

This is list of 10 strong 

 HCL Tech, Ispat Ind, Polaris, Wipro, NTPC, Petronet, ACC, Tata Tea, Mphasis & Hindalco. 

And this is list of 10 Weak : 

HCC, India Info, DCHL, KS Oils, UCO Bank, Uniphos, TV 18, DCB, Rcom & EKC.

The daily trend of nifty is in Down trend 

• Supp / Resis

Indices		Supp/Resis	1	2	3
	Nifty	Resistance	5949.00	5990.35	6066.90
		Support	5831.10	5754.55	5713.20
	Sensex	Resistance	19827.76	19963.75	20216.92
		Support	19438.60	19185.43	19049.44

Market Outlook
	Yesterday, Nifty closed above 5,900 level led by buying in Realty, Metal and Power stocks. Today, Indian market is likely to open on a flat note following mixed sentiments from global markets. The immediate resistance for Nifty now comes at 5,921(20 Days simple moving Average) level; if it moves above this level with volumes then it may even test 6,048(50 Days simple moving Average). On the other hand, major support for Nifty now comes at 5,875 and breaking below it may drag Nifty to 5,857- 5,796 levels. Technical indicator RSI (14) is at 46.90 levels and MACD is below the signal line (9 Days exponential moving average) combined together giving the signal that market is likely to trade sideways between 5,800-6,050 levels. In option front huge short accumulation in 5,800 strikes put and 6,000 strikes call also suggests that Nifty has a strong support at 5,800 levels and resistance at 6,000 level. The investors will wait for inflation data for the month of November which is due today.

Tip for the day
	ARSHIYA INTERNATIONAL (BUY) RSI is at 41 neutral territory showing positive crossover indicating uptrend. Stochastic is moving in neutral zone showing positive crossover. MACD is showing bullish crossover. The stock has rebounded after undergoing a deep correction and has breached its resistance at 230 levels with good volumes indicating that it will move upwards from here. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 241.10 BUY 244/248/252 234 225/240 AEGIS LOGISTICS (BUY) RSI is at 42 neutral territory showing positive crossover. MACD is likely to show positive divergence. Stock next resistance level seems at 320 if its break then stock could risel up to 330. Stochastic is in neutral and expecting to go up. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 311.40 BUY 315/320/326 304 295/330 AMBUJA CEMENT(SELL) RSI is trading in neutral territory at 45 on the verge of showing negative crossover. MACD is showing bearish crossover. Stochastic is hovering in neutral zone expecting to show negative crossover. Today stock has made new candlestick below 34 day EMA which is sign of downtrend. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 138.15 SELL 136/133/130 142 130/150 M & M FINANCE (SELL) RSI is at 38 showing negative crossover indicating downtrend. Stochastic is trading in oversold territory at 20 showing negative crossover. Stock is trading below 08 and 34 day EWMA and showing correction. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 725.25 SELL 715/705/690 740 690/750

US markets
	US stocks closed on a mixed note amid a light economic calendar that had investors doubtful of making any sizable moves. Early strength in the market came amid news of M&A activity, personal computer maker Dell agreed to acquire all of the outstanding shares of data storage solutions provider Compellent Technologies sweetened USD 27.75 per share in cash or about USD 960 million. Analytical instruments and services provider Thermo Fisher Scientific entered an agreement to buy chromatography systems maker Dionex for USD 118.50 per share in cash, totaling about USD 2.1 billion. Canadian oil and gas exploration company Lone Pine Resources, a wholly-owned subsidiary of Forest Oil revealed in a regulatory filing that it intends to launch an up to USD 375 million initial public offering of its shares of common stock.

European markets
	European markets closed higher led by mining and resource stocks. Commodity prices firmed as major consumer China decided to leave interest rates unchanged. In economic news, UK month-on-month, input prices were up 0.9% in November, slower than a 2.2% increase seen in October as well as the expected 0.5% growth. In France, the current account deficit narrowed to EUR 2.5 billion in October from EUR 4.4 billion in September. The trade deficit contracted to EUR 3.4 billion from EUR 5 billion during the period. Meanwhile, Germany's Bundesbank in its latest monthly bulletin cautioned that the pace of German economic growth will slow temporarily in the coming months after robust expansion in the thirst three quarters of 2010.

Index Latest 1 D Chg(%) YTD(%) NSE Index (13 Dec 2010) 5907.65 0.86 13.59 Sensex (13 Dec 2010) 19691.78 0.94 12.75 Dow Jones Ind. .. (13 Dec 2010) 11428.56 0.16 9.59 Nasdaq Composit.. (13 Dec 2010) 2624.91 -0.48 15.68 Hang Seng (13 Dec 2010) 23317.61 0.67 6.61 Straits Times (13 Dec 2010) 3182.32 -0.10 9.83 FTSE 100 (13 Dec 2010) 5860.75 0.82 8.27 CAC 40 (13 Dec 2010) 3892.44 0.91 -1.11 Sectors Close 1D Chg(%) BSE IT 6272.12 0.17 BSEPSU 9369.80 1.57 OILGAS 10560.62 1.27 Advance Decline Ratio Value(in Cr.) Index 5.00 1007.84 SENSEX 3.55 6888.32 NIFTY

SENSEX    NIFTY Top Gainers Close 1D Gain(%) YTD(%) Reliance Infrastructure Ltd. 811.40 3.88 -29.25 Housing Development Finance Co... 692.80 3.60 29.36 Hindalco Industries Ltd. 221.50 3.14 37.79 Top Gainers Close 1D Gain(%) YTD(%) Reliance Infrastructure Ltd. 811.05 3.96 -29.27 Housing Development Finance Co... 693.75 3.76 29.63 DLF Ltd. 291.25 3.26 -19.37 Top Losers Close 1D Loss(%) YTD(%) ITC Ltd. 167.20 -1.68 33.31 Mahindra & Mahindra Ltd. 767.90 -1.25 42.10 Hero Honda Motors Ltd. 1772.25 -0.66 3.25 Top Losers Close 1D Loss(%) YTD(%) Ambuja Cements Ltd. 138.15 -2.71 32.52 ACC Ltd. 1050.80 -2.27 20.44 ITC Ltd. 167.15 -1.85 33.29

Top

Most Active Stocks by value (in Cr) BSE Close %Chg Value(in Cr.) Volume SBI 2736.55 0.39 289.30 1057693 Tata Steel 618.10 2.05 95.70 1526134 RIL 1023.70 1.77 72.78 707164 ICICI Bank 1117.55 0.09 71.79 648163 Tata Motors 1248.10 2.22 63.79 500992   NSE Close %Chg Value(in Cr.) Volume SBI 2732.45 0.45 1151.01 4207333 Tata Motors 1247.60 2.37 418.44 3283615 ICICI Bank 1117.10 0.30 402.69 3636563 RIL 1023.90 1.74 395.44 3848074 Tata Steel 619.00 1.94 326.42 5208415   Strike Price Value Price %Chg    Most Active Calls by Contract Value (in Cr)    Most Active Puts by Contract Value (in Cr)    Most Active Future by Contracts Value (in Cr)     Commodities     Oil prices rose above USD 89 a barrel, surging early with commodities lifted by strong Chinese economic data amid investor concern that China may yet take more action to cool its inflation. Gold rose to settle above USD 1,397 an ounce, with investors buying bullion as the dollar weakened and a U.S. tax cut extension loomed.         International News     Canadian industries operated at 78.1% of their production capacity in the third quarter, up from 76.9% in the second quarter. This was the fifth consecutive increase since the record low rate of 67.8% in the second quarter of 2009. (RTT News) UK input price inflation accelerated more than expected in November on higher crude oil prices. Input price annual inflation was 9% in November, the highest rate since July. (RTT News) French drug-maker Sanofi-aventis today said it has extended the validity of its USD 18.5 billion offer for US biotechnology firm Genzyme Corporation till January 21. Sanofi-aventis' offer of USD 69 per Genzyme share was scheduled to expire on December 10. About 2,211,989 shares, or 0.9% of the outstanding shares of the company, had been tendered by the midnight deadline. (Economic Times)         Domestic News     Punjab National Bank (PNB), India's second largest public sector lender, Monday said it has bought 63.64% stake in Kazakhstan's JSC Dana Bank. (Sify Finance) Aventis Pharma, the Indian arm of French drug giant Sanofi-Aventis, today said that it will exit its joint venture Chiron Behring Vacines Pvt Ltd (CBVPL) by selling its 49% stake, for USD 23.399 million (Rs105 crore). (domain-b) Confidence Petroleum has bagged orders worth Rs 36.64 crores for supply of 3.05 lakh LPG cylinders by Hindustan Petroleum Corporation. The orders are to be executed by April, 2011. The company is expecting further orders from HPCL to its Bazpur (Uttaranchal), Kalmeshwar (Nagpur) & Saoner (Nagpur) units. (Economic Times)     Currency Exchange-Rate 1D Chg(%) 1M Chg(%) EUR 59.69 -0.50 % -1.11 % GBP 71.42 0.01 % -0.27 % USD 45.25 0.07 % -1.72 % FIIs Activity Rs. Cr. MTD YTD Equity in flows 3796.20 33453.70 734810.50 Equity Out flows 4762.40 34614.70 604755.60 Net -966.20 -1161.00 130055.00