CMC, Finolex Industries, Jindal Saw,
Rallis India, South Indian Bank and Usha Martin.
Today we see a firm start, thanks largely to stability in global markets. A good quarterly earnings season may have been discounted but that doesn't prevent companies like Infosys and Bajaj Auto from surprising the street on the upside. Also be prepared for a few nasty surprises. Don’t expect a flying performance from equities this year, as 2010 could turn out to be a year of consolidation. The market will also be pretty volatile, and could surprise on both the sides. So, it is time to be level headed and a bit cautious too. We are not saying that there will be a big fall. Just don’t expect a repeat of last year’s spectacular rally.
Inflation, especially on the food front is a major concern. Even non-food items are beginning to see an uptick. Fuel prices may also inch up in the near term. The Government will announce the latest monthly inflation data today, along with the weekly food and fuel inflation.
Today,disappointing results from Alcoa and China’s surprising hike in the CRR seems to have spooked the already sluggish global equity markets. The Indian market too eased off despite Infosys’ stellar results and strong IIP numbers. With inflation flaring up in recent times, the market fears a sharp reaction from the RBI at this month’s policy meeting. However, concerns on interest rates appear to be exaggerated. A small increase in CRR or even in policy rates should not be such a big issue for markets.Central banks around the globe are unlikely to reverse the monetary stimulus at the same pace as they unleashed them at the height of the financial crisis. The unwinding in the stimulus is going to be a gradual process unless economic recovery outpaces expectations.
The Nifty is all set to fall below 5,200 at the start given the weakness across global markets. Metals shares could take a hit following the China announcement. The Nifty could find some support at 5,180-5,150 levels. If it breaches this range it could head for 5,050. On the upside resistance remains at 5,250 and 5,310.
Market likely to range bound
Small & Mid Cap Stock will in lime light
Bajaj Finserve, Bajaj Auto, Infosys,
Indowind Energy, Jaypee Power (formerly Jaypee Hydro),
Mastek, Piramal Lifesciences,
Nectar Lifesciences and TTK Prestige.
Today,we expect a soft opening as most Asian markets are in the red. Results and commentary from top management of Infosys and Bajaj Auto could change the tempo later in the day. Stronger than forecast IIP data may also boost sentiment. Overall, the current phase of consolidation may extend for a few more days till there is further clarity on the health of the economy and India Inc. The NSE Nifty is likely to trade in a broad range of 5182 to 5310. Beware of the unusual spurt in some non-index stocks.
The bulls will hope the earnings season gives them more reasons to hold on to quality companies and dump the inferior ones. Infosys and Bajaj Auto are the big companies declaring their results today. We expect Infosys to report 0.4% QoQ growth in revenues and 6.3% sequential decline in PAT. For Bajaj Auto, we expect 65% YoY jump in revenues and 189.6% YoY jump in PAT.
IIP data for November is due around noon today, and monthly inflation data is scheduled to be released on Thursday. Industrial output is seen rising by 10% in November from a year earlier after expanding by 10.3% in October. Marketmen will watch these crucial data points for cues on what action, if any, the RBI will take on Jan. 29.
FIIs were net buyers in the cash segment on Monday at Rs30.42bn on a provisional basis. This includes the treasury sale by Reliance Industries. The local funds were net buyers of Rs3.22bn, according to figures published on the NSE's web site. As per the SEBI figures, FIIs were net buyers of Rs1.5bn in the cash segment on Friday.






FIIs were net buyers in the cash segment on Friday at Rs693.8mn on a provisional basis. The local funds were net buyers of Rs1.82bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs7.75bn. As per the SEBI figures, FIIs were net buyers of Rs3.02bn in the cash segment on Thursday.
Today,we expect a slightly positive start as most Asian markets are in the green. Things should turn choppy again later in the day. Strength in brokerages has lifted China and Hong Kong after Beijing approved index futures. Chinese exports have rebounded and imports too have surged. Consolidation seems to be the name of the game as bulls seek a strong foundation amid uncertainty over the prospects for 2010. Bulls and bears both seem to be lacking conviction for the moment; perhaps waiting for further clarity on economic recovery and corporate earnings.
Events scheduled for this week and the month could help shape the opinion about the outlook in near future. IIP data for November will be out on Tuesday while the monthly inflation report is due out on Jan. 14. Infosys, TCS, Bajaj Auto, HDFC Bank, Axis Bank and UltraTech Cement will announce results this week. Later this month, the RBI and the Fed will hold policy meetings. The ECB meets on Thursday but is unlikely to alter its monetary policy just yet.




Excellent performance of
our Last recommendation
Today,we expect a flat to slightly positive start for the Indian market as global cues are indecisive and uncertain. Overall, sentiment should remain subdued for a while. The Nifty could face some selling pressure but is likely to find support at around 5225. If it crosses 5310, it could head for 5350 in the near term. Beware of the irrational rise in small and mid-cap stocks. Interest rate concerns cast a shadow across world equity markets after the Chinese central bank moved to tighten liquidity in the money markets. This could lay the groundwork for an eventual rate hike in China.
Commodity markets edged lower. Crude oil futures closed under $83 a barrel. Separately, a Fed official said policymakers should start tightening sooner rather than later.In the positive side, US retailers posted modest gains in sales last month. A weekly report on first-time jobless claims also came in ahead of estimates. Meanwhile, the Bank of England and Bank of Korea have left interest rates steady. All eyes are now on Friday’s non-farm payroll numbers in the US.

of our Recommendation


Excellent performance of
our Last recommendation
If Revives :Sell all ...
SAIL
SESA GOA ,
NALCO,TISCO ,
TCS ,INFY ,
HCL TECHWIPRO
Today we expect a flat opening and another choppy day. With lack of triggers - positive or negative - some shuffling of portfolios could take place. A softening before the results could give more confidence for investors to re-enter. Looks like the market can't make up its mind on where to go. After a strong start, the market appears to have slipped back into consolidation zone yet again. Most players are awaiting India Inc. to kick off the earnings season.
The bright news on this front has been mostly discounted. What company head honchos say (and do) about the medium term outlook will be crucial.A lot of hopes are pinned on the Budget (which may be on a Saturday) and corporates and investors will hope the budget is not just another annual ritual this time. Any government announcement on its ‘exit’ from the fiscal stimulus would be a key element. By the end of this month, we are most likely to hear from the RBI on its plan to reverse the easy monetary policy.
Today,the bulls seem to be a happy lot; they don’t have many issues to deal with for now (except perhaps a round of profit-booking soon). The good news is that money is still flowing into Indian stocks, both from overseas and local investors. Risk appetite seems to be intact despite some worries on valuations and uncertainty over the prospects for the year. So far we’ve not got any real bad news from any corner of the world. If the current positive trend persists, the Nifty can comfortably pierce the 5300 milestone today.
Beyond that it could face resistance at 5310 and 5360. The bull camp is talking about levels of 5500-5600 in the medium term, provided there are no nasty surprises. But, this is just the beginning of 2010. A subdued recovery in matured economies could possibly drag the market down. Dollar’s movement is another key variable that might swing the pendulum either way. For now though it looks like policymakers are likely to maintain status quo on various stimulus steps. Any unwinding would be done in a gradual manner.
Sugar, Cement,
Fertilizers,
Tea & Coffee
100% Fantastic performance
of our last recommendation
Sensex may jump 150 to 200 points
But Profit Booking is Likely in Second Session
Today Listing: Godrej Properties
(BSE Code: 533150) (B Group)