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

Spain fails to impact Wall Street

Wall Street closed marginally in the red despite of warning from Moody's that it would downgrade Spain. Meanwhile "all is not well" at Dalal Street which might witness further selling pressure today.

News Bytes


* RIL, Tata Steel among top advance tax payers

* BoB inks Spanish JV to ride credit card boom

* Lanco Infratech to acquire Australian coal mine

* Essar, Kobe join hands to develop auto steel

Markets - Choppy but not much downside


We expect markets to trade with a negative bas. Having said that we do not expect major downsides from current levels. Investors should start picking stocks at these levels as come January we will believe renewed FII selling will take markets to higher levels.

All eyes on RBI policy meeting tomorrow

Indian Equities might open flat on Wednesday morning on no major news flow but all eye would be set on RBI policy meet tomorrow.

Fed statement re-iterated job market weakness and low inflation, the Fed characterized the U.S. expansion as "continuing," a modest upgrade from its November description of the recovery as "slow."

Wall Street closed marginally in the green. Asian Indices are trading flat on Wednesday morning.

News Bytes :

* LIC Housing Finance approves 1:5 stock split

* Mallya stake in Kingfisher to drop below 50%

* TCS bags $100mn tech deal from Deutsche Bank

* Eveready hikes prices of batteries by up to 9%

* BPCL increases petrol prices by Rs 2.95 a litre

* Neyveli in search for JV partner for overseas acquisitions

Markets - Caution Today

After three consecutive days of rally, Markets are likely to take a pause before the next move. On the contrary it is advisable to stick to strong midcaps for now. Do not over trade and choppy sessions are expected for rest of the december.

D-Street to open flat, Midcaps to extend pullback

Indian equities are likely to open near the touchline on Tuesday on the back of flattish global markets and lack of news flow. Wall Street closed mixed but again near to the the previous close though Nasdaq snapped nine-day winning streak. Asian markets are trading flat on Tuesday.

News Bytes

* DB Corp launches Dainik Bhaskar in Jamshedpur

* GVK bid process for Mumbai airport hospitality zone soon

* Lincoln Pharma ties up with US based Human Biosciences Inc

* Hinduja’s flagship Ashok Leyland has bagged an order for 600 vehicles from VRL Logistics of Hubli

* DoT rejects Liberty bid for ITI takeover

Markets - Flat but volatile

We believe Markets are likely to trade flat atleast for the first half of the trade with the focus shifting to mid and smallcap stocks. These stocks will see consolidation after this pull back rally. Rest of the month we expect a ranged trade with volatility in the next one week to ten days. Investors should get ready for the January rally by accumulating stocks with solid fundamentals.

Hesitant start on cards, Asia trades in green

Dalal Street might open marginally in the red on Monday morning as follow up buying might not be evident after Friday's decent pull back. Wall Street closed in the green on Friday, hitting a 2 year highs might see some profits off the table in the next couple of weeks due to window dressing.

Asian Markets lead by Shangai are trading positively.

News Bytes

* Coal India, NPC mull JV for nuclear power

* Redington India Promoters' Sell 14% Stake

* Fortis Healthcare Acquires UP-Based Vivekanand Hospital

* Sequoia Bought 7% Stake In Hindustan Glass

* SEBI tightens promoter norms

* K Sera Sera on buying spree, acquires coal mine in Indonesia

* L&T, Russian firm in Nuclear Power JV

Markets - Ranged trade with volatility

Markets are likely to shed some weight today. FIIs were short in Index futures on Friday. While volumes were low during Friday's rally, Nifty at 5600-5700 might provide the much needed support. Indian investors might not see major moves above 6000 levels for Nifty before this year end.

Dubai debt concerns mounting, Dead Cat bounce on cards

November has created ripples among Indian investment community especially the second half of the month was night marish on massive profit booking by FII's. Nifty lost nearly 9 pct from the top.

While Wall Street is closed on Thursday on account of Thanks Giving, Asian markets opened marginally in the green on Friday.

Dubai - Debt concerns

Last November Dubai World, the conglomerate with emirate’s government as one of the shareholder, startled global markets by delaying payments on its debt. In September, Dubai World struck a deal with its creditors to restructure about $24.9 billion of liabilities. While Dubai World’s agreement with lenders helped improve sentiment, concerns over debt loads in the emirate have not gone away.

In recent weeks, Dubai Group has reportedly missed loan payments. We do not expect Dubai debt concerns to raise alarms.

Dalal Street - Oversold?

No doubt Nifty and Sensex are oversold, we believe there will be a surprise rally soon. Nifty might lose another 100-150 points from the current levels. We see this sell-off as the final oppurtunity for investors to get on board. Except for IIP data none of the concerns expressed in the recent days including scams, war tensions, FII year end selling has any role to play in the growth of the economy.