Market Outlook 22nd Dec 2010

Scripts to watch on 22nd Dec. : AxisBank, Bhartiatl, Biocon,  Bhel, HDFCBank, ICICIBank, KotakBank, L&T, M&M, Maruti, ONGC, Rcom, Reliance, RelInfra, SBI, TataPower, Tisco, Wipro

Strong & Weak Stocks

This is list of 10 strong stocks

Core Protect, Hexaware, Wipro, Mphasis, Asian Paints, Hero Honda, Renuka, Polaris, TCS & Tisco. 

And this is list of 10 Weak stocks: 

Welcorp, LIC Housing, Ibrealest, Sintex Ind, Orbit Corp, SCI, India Info, Uco bank, HDIL & Escorts.

The daily trend of nifty is in Down trend 

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

AxisBank Buy above 1333 1343/1351/1359/1368 Stop 1318

AxisBank Sell Below 1304 1296/1289/1281/1274 Stop 1318

Break Out !!: HDFCBank Buy above 2233 2245/2254/2267/2279 Stop 2214

HDFCBank Sell Below 2197 2189/2177/2166/2153 Stop 2214

Sesagoa Buy above 304 307/310/313/316 Stop 301

Sesagoa Sell Below 296 293/290/288/285 Stop 301

Break Out !!: Sterlite Buy above 179 182/184/187/190 Stop 176

Sterlite Sell Below 173 170/168/165/163 Stop 176

Tisco Buy above 681 685/689/694/698 Stop 676

Tisco Sell Below 671 668/664/661/657 Stop 676

Market Outlook
	Yesterday, Nifty surged almost 53 points and managed to close at 6000 level. Today, market is likely to open on flat to positive note following positive global sentiments. Resistance for Nifty now seems at 6,030-6,050 while support stand at 5,950-5,908. On upside if level of 6,030 breaches decisively then we could see rise up to mark of 6,080, on the lower side if level of 5,950 is breaches then Nifty could retrace up to support of 5,900 mark. Fresh long positions can be assumed in Metals and Oil & Gas stocks from current levels or from lower supports of the Nifty at 5,950 level. Short Covering can also be assumed Realty and Banking stocks if the Nifty holds the levels 6,000 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. Nifty has crossed 38.2% Fibonacci retracement and now is in the verge of crossing 50% level which stands at 6020 level. Technical indicators like MACD, RSI and stochastic are also supporting its uptrend move. MACD showing positive divergence and crossing the signal line (9 Days exponential moving average) from the below, which is bullish signal. Further, Nifty is forming a double bottom pattern and upside breakout can be seen when Nifty breaches and close above vital resistance 6,030.

Tip for the day
	ZYLOG SYSTEM (BUY) RSI is at 41 neutral territory showing positive crossover indicating uptrend. Stochastic is moving in oversold zone showing positive crossover. MACD is showing bullish crossover. The stock has rebounded after undergoing a deep correction and has breached its resistance at 360 levels with good volumes indicating that it will move upwards from here. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 383.60 BUY 388/395/402 374 360/410 AKZOINDIA (BUY) RSI is at 55 neutral territory showing positive crossover. MACD is showing positive divergence. Stock next resistance level seems at 835 if its break then stock could risel up to 860. Stochastic is moving in neutral zone showing positive crossover. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 821.65 BUY 830/840/850 805 780/870 WOCKHARDT (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 has made new candlestick above 34 day EMA which is sign of uptrend. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 360.10 BUY 364/370/376 352 340/380 SKS MICRO FINANCE (SELL) RSI is at oversold territory at 29 levels and showing negativecrossover moving towards deep oversold territory. Stochastic has also just entered into overbsold 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 603.60 SELL 598/590/580 612 560/640

• Supp / Resis SPOT /CASH LEVELS FOR INTRADAY

Indices		Supp/Resis	1	2	3
	Nifty	Resistance	6018.72	6036.78	6066.12
		Support	5971.32	5941.98	5923.92
	Sensex	Resistance	20125.52	20190.72	20290.60
		Support	19960.44	19860.56	19795.36

Derivatives Stratagy today on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-strategy-22-Dec-2010.htm

US markets
	US stocks ended higher with buying interest driven by corporate news and optimism regarding the potential economic growth of US in 2011. Corporate news drove some of the day's moves amid the absence of market moving economic reports. Canadian lender Toronto-Dominion Bank higher after announcing a deal with Cerberus Capital Management to acquire auto lender Chrysler Financial for about USD 6.3 billion in cash. Nutritional products firm Martek Biosciences also rose moved to the upside on news that after signing an agreement to be acquired by Royal DSM, a Netherlands-based life sciences and materials sciences company, for USD 31.50 per share in cash. Cliffs Natural has received Australian Commonwealth and State government approval for developing new deposits at its iron ore reserves in Western Australia. Jabil Circuit advanced after forecasting second quarter earnings and revenues in ranges that were above analyst expectations.

European markets
	European stocks rose led by miners and lenders as traders shrugged off a downgrade warning for Portugal. Moody's Investors Service put Portugal's credit rating under review for a possible downgrade "by a notch or two". Last week, the ratings agency had slashed Ireland's credit rating by five notches and warned of possible rating cuts to Spain and Belgium. In economic news, a forward-looking indicator of German consumer sentiment unexpectedly dropped. Market research group GfK's business climate index edged down to 5.4 points in January from 5.5 recorded for December. Leading economic indicators for Germany climbed 0.8% month-over-month in October, adding to a 0.7% gain in the previous month. In the UK, public sector net borrowing rose to GBP 23.3 billion in November from GBP 9.2 billion in October and 17.4 billion recorded a year ago. Italy's seasonally adjusted jobless rate edged down to 8.3% in the third quarter from 8.4%.

Indian markets (Prev Day)
	The domestic bourses ended on a robust note as the market closed above the 6,000 mark on Nifty and 20,000 on Sensex benchmark amidst strong buying across sectors. The market started off the session on a bullish note, as the benchmark indices witnessed a gap up opening tracking positive Asian cues. The Asian stocks surged during early trade as commodity prices climbed and tensions on the Korean peninsula eased following a military drill by the South yesterday. Meanwhile, the Japanese bourses rose as analysts assigned share-price estimates or ratings and a Federal Reserve official said that the US economic growth next year may be stronger than some economists forecast. Soon after the positive start, the market gained further momentum and journeyed northwards. A narrow rangebound movement on the higher side was witnessed since the mid session and the market started trading sideways. The positive opening for the European bourses helped to maintain the gains in the domestic front and finally the market closed near the session highs. At the end, Sensex closed at 20,060.32 up by 171.44 points. It touched an intraday high of 20,090.84 and low of 19,925.76. Nifty ended at 6,000.65 up by 53.60 points. It made a high/low of 6,007.45 and 5,960.05 respectively. Index Latest 1 D Chg(%) YTD(%) NSE Index (21 Dec 2010) 6000.65 0.90 15.37 Sensex (21 Dec 2010) 20060.32 0.86 14.86 Dow Jones Ind. .. (21 Dec 2010) 11533.16 0.48 10.60 Nasdaq Composit.. (21 Dec 2010) 2667.61 0.68 17.56 Hang Seng (21 Dec 2010) 22993.86 1.57 5.13 Straits Times (21 Dec 2010) 3139.85 0.22 8.36 FTSE 100 (21 Dec 2010) 5951.80 1.02 9.96 CAC 40 (21 Dec 2010) 3927.49 1.09 -0.22 Sectors Close 1D Chg(%) BSE IT 6679.20 -0.17 BSEPSU 9344.81 0.40 OILGAS 10731.50 0.79 Advance Decline Ratio Value(in Cr.) Index 2.00 918.31 SENSEX 2.13 6485.84 NIFTY    SENSEX    NIFTY Top Gainers Close 1D Gain(%) YTD(%) Sterlite Industries (India) Lt... 176.40 4.63 -18.11 Hindalco Industries Ltd. 233.55 4.45 45.29 ICICI Bank Ltd. 1138.55 3.56 30.02 Top Gainers Close 1D Gain(%) YTD(%) Sterlite Industries (India) Lt... 176.75 4.96 -18.13 Hindalco Industries Ltd. 233.60 4.31 45.23 Sesa Goa Ltd. 301.15 4.26 -26.69 Top Losers Close 1D Loss(%) YTD(%) Hero Honda Motors Ltd. 1966.00 -0.77 14.54 Bharti Airtel Ltd. 332.85 -0.67 1.23 Infosys Technologies Ltd. 3329.25 -0.65 27.79 Top Losers Close 1D Loss(%) YTD(%) Sun Pharmaceutical Industries ... 428.15 -3.41 41.88 Suzlon Energy Ltd. 50.65 -1.27 -43.94 Bharat Petroleum Corporation L... 683.40 -1.16 7.53 Top Most Active Stocks by value (in Cr) BSE Close %Chg Value(in Cr.) Volume Hero Honda 1981.20 -0.77 144.49 740987 SBI 2703.65 1.48 114.14 415380 Tata Steel 664.50 1.66 86.53 1283589 JindalStlPow 675.35 1.44 79.34 1160086 RIL 1057.45 1.32 69.89 655305   NSE Close %Chg Value(in Cr.) Volume Hero Honda 1980.50 -0.40 562.84 2886164 SBI 2700.45 1.60 538.96 1961334 ICICI Bank 1100.05 3.48 469.13 4137814 RIL 1056.75 1.55 392.59 3677847 InfosysTechn 3349.95 -0.62 336.32 1007480   Strike Price Value Price %Chg    Most Active Calls by Contract Value (in Cr) NIFTY ( 30 Dec 2010 ) 6000.00 1197708.33 66.25 -21.36 NIFTY ( 30 Dec 2010 ) 6100.00 747322.01 25.60 -14.84    Most Active Puts by Contract Value (in Cr) NIFTY ( 30 Dec 2010 ) 5900.00 794591.22 27.05 82.62 NIFTY ( 30 Dec 2010 ) 6000.00 677664.28 56.30 62.08    Most Active Future by Contracts Value (in Cr) SBIN ( 30 Dec 2010 ) - 95640.01 2757.85 -1.55 HINDALCO ( 30 Dec 2010 ) - 69575.77 234.10 -3.93     International News     Greek current account deficit narrowed in October due to fall in trade gap and a rise in surplus on services balance. The current account deficit dropped 1.7% year-on-year to EUR 2.35 billion. Trade deficit, excluding oil and ships, decreased by EUR 351 million during the month. (RTT News) Toronto-Dominion Bank will buy Chrysler Financial from private equity firm Cerberus Capital Management for USD 6.3 billion, making Canada's No. 2 bank one of North America's top five bank-owned auto lenders. The purchase consists of net assets of USD 5.9 billion and about USD 400 million in goodwill. The bank does not intend to issue common equity in connection with the deal. (Economic Times) Public borrowing in the United Kingdom rose to a one-month record in November at 23.3 billion pounds (USD 36.1 billion), higher than forecast. The figure beat the previous one-month high of 21.1 billion pounds in December 2009. (Economic Times)         Domestic News     Key ministries including finance and road will deliberate from 22 Sep'10 on steps needed to encourage public-private-partnership for developing the infrastructure sector, which is estimated to require USD 1 trillion during the 12 Five Year Plan (2012-17). (Economic Times) ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp, has signed an initial agreements to barter its stake in its Russian unit Imperial Energy for acquiring a 25-30% interest in Sistema-owned JSC Bashneft. (Business Standard) Drug firm Dr Reddy's Laboratories said it has signed a pact with Russia-based R-Pharm for co-development of high technology products and collaboration in manufacturing and marketing.(Business Standard)     Currency Exchange-Rate 1D Chg(%) 1M Chg(%) EUR 59.61 -0.27 % -1.24 % GBP 70.39 -0.05 % -1.71 % USD 45.26 -0.26 % -1.69 % FIIs Activity Rs. Cr. MTD YTD Equity in flows 3047.40 47808.50 749165.30 Equity Out flows 3079.90 49268.70 619409.60 Net -32.50 -1460.20 129755.80

Derivative EOD Report on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-EOD-21-Dec-2010.htm