Wednesday, December 26, 2007

Bulls above 20000 only

Nifty — The index opened on a strong note and exhibited strength throughout the day’s trading session. It ended the session with a gain of 214 points.

Support & Resistance — The index closed above the 10 dma = 5934 and 20 dma = 5869. Intra day declines should find support around the 5934-5869 band. On the upside, the index faces resistance around 6012 and 6185 level.

Conclusion — Expect test of 6012, break above 6012 can see further strength

Shares of media and entertainment companies may attract investors' attention with films like "Taare Zameen Par" and " Welcome" doing well. While TZP is co-produced by PVR, Welcome is being distributed by the Network 18 group. Multiplex operators such as Inox, Adlabs and Shringar Cinemas could also gain.

Victory of Narendra Modi in Gujarat is perceived to be very positive for Adani Group. Keep an eye on Adani Enterprise and Mundara Port.

Ambalal Sarabhai Enterprises Ltd.
Go positive in this counter for a mid term target 52.00

Stocks in News:

SAIL to invest Rs200bn in West Bengal, about two fifth’s of its total planned investments.

State owned India Infrastructure Finance Company to lend Rs18bn to Tata group's Mundra UMPP.

ONGC-Mittal JV wins block in Trinidad & Tobago with estimated gas reserves of 2tn cubic feet.

Lanco Infratech in talks with global airport operator as partner in its bids for non metro airports. (Mint)

The Board of SBI will meet on January 25 to consider the merger of six associate banks with the parent.

Maruti Suzuki India will hike prices of its vehicles across different models between Rs4,000 and Rs12,000 next week.

ONGC has agreed to supply natural gas for the proposed 104MW gas based thermal project at Monarchak in West Tripura district.

GNFC has lined up an investment of Rs40bn over the next four years.

Allied Digital is close to two small-size acquisitions.

Coal India subsidiary in talks with Uttar Pradesh Rajya Sabha Vidyut Utpadan Nigam to float a 50:50 JV for setting up a 1,000MW thermal station.

BPCL is in talks with Japan based Nippon Oil for sharing expertise on fuel-cell cogeneration system.

Central education and oil cess to be kept outside the dual goods and service tax structure from April 2010.

Mobile tariffs for national long-distance calls are set to witness a further drop by 5-10%.

The Coal Ministry has asked the power ministry to ensure import of at least 20mt of coal next year.

The Government is likely to save Rs30bn on fertilizer subsidy bill.