Thursday, December 23, 2010

Crude gets rude, trading at 2-year high

Dalal Street is likely to open flat yet again and might trade in a narrow band with a positive bias as Asian markets are trading in green. Overnight Wall Street finished off with marginal gains. Year end activity is taking a toll on volumes in all global markets.

U.S. crude oil futures prices extended gains and rose to a 26-month peak above $90 on Wednesday in choppy trading after government data showed crude stockpiles fell more than expected last week, a day after industry data showed a similar drop by inventories.

News Bytes

* Acquired Griffin for A$750 million: Lanco

* RBI sees liquidity easing in Jan

* 2 killed in Dr Reddy's nitrogen gas leak

* RBI bans FII purchases in IndusInd Bank

* Fortis Global to buy 30% in Aussie firm for Rs 450 cr

* M&M, Gulf Oil launch co-branded diesel engine oil

* Radico in advanced tie-up talks with 3 intl firms

* PTC India''s arm files draft prospectus with SEBI

Market Outlook - Choppy

We expect the Markets to display same kind of volatility we have witnessed yesterday but with in a band. There is no point in panicking and instead pick stocks good fundamental stories.

Few stocks to watch in today's trade include Indiabulls Financial, Kingfisher Airlines, Hind Motors and Navneet