Street's subdued saga likely to extend

Dalal Street is likely to trade in a band yet again on flattish global cues as majority of the retail investors and FIIs are holidaying. China's central bank could raise interest rates to alleviate negative real interest rates in the first half of next year while inflation pressures are large, the central bank-backed Financial News reported Tuesday. Asian markets are currently trading mixed today.

News Bytes

* Tata Steel may cut debt in Riversdale sale

* PFC & REC set sights on bank foray, to hire consultants

* Ramky mulls hiving off road, industrial park business

* CIL's overseas acquisitions in 2011-12

* RBI cuts SLR for RRBs to 24% to inject liquidity

* KEC Intl wins orders worth Rs 1,018 cr

* iGate, Apax close to buying 63% of Patni Computer

Markets - All roads point to new highs next month

We expect markets to hit new highs before the budget. One can see pre-budget rally from the second week. IT stocks look promising, so are Oil related stocks. Infrastructure and Realty are the two dark horse sectors while Banking and Auto are most likely to underperform going forward

Subdued start on cards, China hikes interest rates

Dalal Street is likely to open flat on Monday morning on mixed Asian markets and flattish US cues. Crude Oil is likely to witness a sharp rally as Arctic weather invades US East Coast, threatening to snarl air and ground transportation as holiday travelers scramble to find ways to get home.

Asian markets are trading mixed on Monday morning.

News Bytes

* RCF scanning price asked for Russian mine stake

* Yes Bank asks MFIs to return Rs 100 cr loans

* Manufacturing sector posts high growth in April-Dec: CII

* NMDC likely to hike iron ore prices by 3%

Markets - Look forward to underperforming sectors next year

We believe Infrastructure helped with Realty sectors are likely to lead the rally on the street. With major FIIs turning their heads to these underperforming sectors, we expect Banks and Autos to hand on the baton. Banking sector is unlikely to shine in the next year on account of lower margins.

Nifty should close above 6020 for a bull run. Given the low volume trade, we expect Nifty to again fall back below 6000 levels before expiry.

Another subdued session in the offing on Dalal Street

Indian equities might continue to languish near the current levels in the next 4-5 trading sessions on flattish global cues. On Wall Street stocks finished mixed but were little moved by Thursday's deluge of economic data as volumes thinned on the last trading day before the three-day Christmas holiday. Asian markets are trading in red on Friday morning.

News Bytes

* Strides to up stake in Australian pharma to 94%

* Titan to double Sonata sales over 3-4 yrs

* Temasek buys 3% pie in Max India

* GPI, ITC resume cigarette production

* Sugar hits fresh 30-year high, supply tight

* Adani Power awaits environ min nod for Bhadreshwar plant

* Glenmark receives USFDA nod for three drugs

* IOC's Rs 19,000-cr FPO hits subsidy block

Markets - Hanging on

While we expected a band of 5800-6000 for Nifty for this monthe expiry, it appears breaking 5900 on Nifty is also getting tougher on each passig day. Sugar stocks spiked up in the last hour of trade. Keep an eye on the same.

Stocks to watch for in today's trade include Ballarpur Indutries, OBC, Kingfisher Air, DCB

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

Nifty to face resistance at 6020

Dalal Street is likely to witness a volatile session today with Bull pointing guns towards 6020 level for Nifty, considered as a key resistance level. Overnight US Markets closed in the green. We expect a good rally in the US stocks in the next three months.

News Bytes

* Coal India close to buying 15% stake in Oz mine

* Satyam minority investors oppose merger with TechM

* Moser Baer commissions India's largest solar plant

* Dr Reddy’s inks pact with Russian pharma firm

* Patel Engg-led consortium bags Rs 300-cr order

* Dr Reddy's inks pact with Russian firm R-Pharm

* Essar bids for Shell's Stanlow refinery

Outlook

For today broking stocks might attract interest in conjunction with Japanese broking stocks. Essar Oil might witness some action after reports of UK acquisition is doing rounds. Overall we believe this market is for investors with a little patience and one can witness a big action in the next three months especially in the small and midcap stocks.

Second rung IT to be the hot favourite

Indian equities might gap up marginally on Tuesday morning as Asian markets are trading in green with Nikkei leading the charge. Wall Street closed mixed on Monday.

News Bytes

* Jindal Power IPO likely in next calendar year: JSPL

* Ranbaxy’s South African JV bags Rs 603 cr order

* Tata Chemicals to buy British Salt for Rs 660 cr

* Reliance Industries plans to shut 200,000 bpd FCC

* Lanco Infra ties up funding for Maharashtra power project

* Diamond Power eyes turnkey to double order book by March

Markets : Not much to talk about

While markets continue to trade ranged, we believe second rung IT stocks are ready for a take-off. Yesterday's trade pointed towards a big move soon in this space. We expect more consolidation in this space going into year 2011.

Place your bets on second rung IT in the short term

Expect subdued activity in the coming weeks

Dalal Street is likely to open flat, inline with the global markets on account of listless trading due to "December" factor. From Wall Stret to Dalal Street there is not much to expect in the coming two weeks unless there is a major global event. Asian Markets are trading flat today.

News Bytes

* Patni Computer bid in last stage, new owner likely this week

* Moser Baer Solar plans up to $600 mn capex

* Gold jewellery sales increase 20% in last fortnight

* Ranbaxy to recall batches of anti-cholesterol drug from UK

* PTC finance arm to float, parent’s stake to reduce

Market Outlook

We expect markets to trade in the range of 5800-6000, taking the pain to option traders. This month's expiry has another ten days to go. We advice investors to start picking up stocks as New year is most likely to rock. We are expecting massive inflows in the second week of Janunary