NIFTY - Moving Averages — The 50 dma = 5870, 20 dma = 6021 and 10 dma = 6089. The index is trading above its averages; declines during the week should find support around the averages
Resistance — The index faces resistance around 6300 levels.
Conclusion — Intra-week declines should find support around 6185-6089 band
Business Standard reports that 4 big banks State Bank of India (SBI), ICICI Bank, Bank of Baroda (BoB) and Bank of India (BoI) are set to book mark-to-market losses on the exposures to CDO's with ICICI being the major loser with $1.5 billion exposure to subprime. We have to wait for confirmation as ICICI Bank denied the same last time on simillar reports. Tata Motors will be rolling out the much hyped one lakh car and the stock is likely to show action. Traders stay away from this market as volatility will squeeze your pockets
Gammon India(Rs.777.05) is looking great for 4 figures
HOT PICKS - ELDECO HOUSING,SATHAVAHANA ISPAT,HINDMOTORS
What the FIIs are doing
FIIs were net buyers of Rs160.1mn (provisional) in the cash segment on Friday while the local institutions pumped in Rs5.07bn. In the F&O segment, foreign funds were net sellers of Rs9.08bn.
On Thursday, FIIs were net buyers of Rs7.25bn in the cash segment. Mutual Funds were also net buyers of Rs4.9bn on the same day.
News Snippets:
Jet Airways to go for a private placement or QIP to dilute promoters stake by 5%.
M&M may pull out of the Rs40bn three way Chennai joint venture with Renault and Nissan.
Chrysler has initiated negotiations with M&M for a partnership in India.
ONGC seeks Rs160bn worth of incentives for its proposed 15mn ton pa refinery at Kakinada.
London based Caparo group to invest Rs35bn to set up an automotive and aerospace components park in Andhra Pradesh.
SBI, ICICI Bank, Bank of Baroda and Bank of India to book mark-to-market losses on the exposures of their foreign offices to credit derivatives.
Reliance Industries seeks a minimum supply of 3.6mn scmd of gas for its petrochemical plants from Panna-Mukta and Tapti fields.
BSNL to form a separate tower company early this year; may lease out 40,000 towers to private companies.
ADAG plans to bring all its proposed overseas power generation projects under Reliance Power; group evaluates options to make power equipment.
SAIL scouting for new iron ore mines; applies for prospecting and mining leases.
BHEL plans to boost exports six-fold by 2012.
Gitanjali Gems on look out for more buy outs in US, the largest jewellery market in the world.
Reliance Power may invest in Ratnagiri Gas and Power if private companies allowed in the erstwhile Dabhol project.
Indian Oil’s 330km Paradip-Haldia crude oil pipeline to go on stream in six weeks.
Reliance Industries may offer rigs to ONGC in two or three locations in 2008-09 on a sharing basis.
Gujarat Fluorochemicals will sell half the poly tetra fluoro ethane (PTFE) output of its Dahej plant to an European collaborator.
HPCL has raised Rs2.9bn from sale of oil bonds.
PE firm General Atlantic may buy 10% stake in Essar Power.
PE firm would pick up 15% equity stake in Mahindra Forgings.
PFC plans SPV to offer consultancy services across various sectors.
Canara Bank may acquire a bank this year.
DoT doubts Spice Telecom’s eligibility for licenses in 20 circles on lack of the required net worth.
Indian Railways hikes iron ore freight, less than two months prior to railway budget.
Inflation rises to 3.5% for week ended December 22nd, as vegetables become costlier.
Ethanol may get ‘declared goods’ status in Budget.
Fuel prices may rise after January 17th when PM’s ministerial panel on commodity prices meets to approve the hikes.
Government expects investments worth Rs2tn in the aviation sector in the next 10 years.
Government plans to set up a national electricity fund with a corpus of Rs1tn for investment in the transmission and distribution sector.
Government to earn Rs70bn from spectrum fee in 2008-09, without impacting tariffs.
Himachal Pradesh Government invites bids from domestic and global companies for 1,481MW hydel units.
Finance Minister asks public sector banks to cut deposit & lending rates by 50bps.