Asian markets on the run, D-Street to extend the rally

Indian stocks are likely to extend the four day rally on Tuesday on positive global cues and overnight gains in the US market. Wall Street stocks posted strong gains of roughly 1% during 2011's first trading session as promising manufacturing and construction data bolstered confidence in the U.S. economy's recovery prospects. Stocks are expected to rally in January, potentially marking 2011 as the year investors returned in number to the equities market.

Asian Markets are trading in the green on Tuesday.

News Bytes

* Nalanda Capital hikes Voltamp stake to 8%

* Lupin settles litigation over Lunesta with Japanese firm

* Patni-iGate deal hit by procedural delays

* Exports rise 26.5% in Nov, may exceed $200-bn target

* Rubber output up in Dec; consumption drops 1.3%

* ACC, Ambuja despatches rise in December

* KEC International strengthens order book to Rs7,500-8,000 crore

* Reliance Cap’s unit buys 26% stake in ICEX from Indiabulls

Railway Stocks might cut loose

Its time for the Railway budget stocks to spike up. Kalindee Rail, Titagarh Wagons, Texmaco and Kernex are the ideal bets in this space. Realty and Infra started showing momentum and might inch up today also. Second rung IT looks promising while Banks and Autos will be pushed to the back burner.

We had a decent start to the F&O segment while our latest swing trade call is on the move with gains of 8 pct till date.

New trading year likely to start with a bang

Dalal Street is likely to open in the green on the first trading day of year 2011 on the back of positive global cues. Inflows are expected to be a major booster for the markets in the next two months. One should not be surprised if the markets run up another 10 pct in two months.

News Bytes

* iGate cancels announcement of deal with Patni

* External debt exceeds forex reserves after 7 yrs

* Tata Steel, Nippon to ink Rs 2,400-cr JV by Jan-end

* Govt explores capping FDI in pharma

* NTPC to set up 4,000 MW unit in Vizag

* China manufacturing growth slows

Get ready for the run

While technically FIIs start punching cash orders from the second week of January, we believe the rush for midcap and smallcap stocks is likely to continue this week too. With Q3 numbers round the corner, the onus is on the frontliners to deliver goods.

Kalindee, Titagarh are looking good while Coal stocks are likely to see massive interest on the back of Australian floods. Realty stocks are looking interesting too.

Year 2010 : Nifty up 18 pct, Sensex up 17 pct

Dalal Street might wrap up the last day of the year with a ranged trade as traders look forward to new year celebrations. Year 2010 delivered excellent returns to investors.

Nikkei and Kospi were closed today on account of holidays.

News Bytes

* iGate to control Patni with 60% stake buy

* Citi, Goldman plan to buy 5% in Reliance Broadcast

* Manganese Ore in talks with Gabon: source

* SBI to raise Rs 12,000 cr from bonds by Mar 2012

* K S Oils to allot 1.64 cr shares to promoters

* SSWL commences Wheels Rims supply to Tata Motors

* Food inflation accelerates to 10-week high

* PNB seeks partners for insurance business

Market Outlook

Nifty delivered a surprise visit to 6100 levels, hitting all call writers till 6000 levels. We believe Markets might see new highs soon. With fresh inflows expect in January this time it might be unstoppable for Markets to hit new highs.

Stay invested.

Nifty eyes 6100

Dalal Street is likely to head north after excellent gains yesterday with Nifty eyeing 6100, causing pain to 6000 strike call writers. On the wall street stocks indexes finish with small gains and remain on pace for their best December in nearly 20 years.

The Standard and Poor's 500-stock index is up 6.7 percent for the month. If it closes Friday at this level or higher, it will be the index's best December return since 1991. Japanese stocks declined as auto shares decline on a strengthening yen and concern about Chinese moves to curb car-buying.

News Bytes

* Suzlon sees revival, needs more cash just to survive

* PNB still interested in insurance sector, seeks JV

* NTPC likely to float Rs 18,000-cr tender

* SAIL FPO in Jan, ONGC in March, IOC deferred

* Godrej Properties signs development pact with Addison & Co

* Unity Infra to launch three Nagpur malls by mid-2012

* India Inc raises Rs2 trillion in decade via IPOs

Markets - Expiry moves, volumes low

FIIs were busy seen buying Index Futures and Index options as if it was a regular trading day. Volumes were on the higher side in the F&O segment. Major players appear to be active in the F&O segment. Speculative bets are back in the reckoning but we advice investors to stay cautious with these counters. Choose stocks with good fundamentals.

Another choppy session on cards

Dalal Street is likely to extend the choppy ride with another lacklustre session thanks to simillar cues from global equity markets. The Dow Jones Industrial Average edged up to hit a fresh 2010 closing high in thin trading on Tuesday.

Asian Markets are trading flat on Wednesday.

News Bytes

* Gitanjali in talks to raise $100 mn

* HPCL, Mittal plan IPO for Bathinda refinery in 2011

* M&M faces $290 millon lawsuit by Reva ally in New York

* Indiabulls renews partnership with RSA

* Gayatri Projects bags order worth Rs 113 cr

* MFIs seek freeze on repayment to Banks

* MOIL invites bids to form JVs for acquisition.

* US firm buys 60% stake in Nitin Cylinders

Markets - Flat but exciting times ahead

The current boredom on Dalal Street has not been witnessed from the past two years with majority of the investors taking a break from trading. We write time and again that exciting times are ahead of us. It is time to accumulate good stocks and we advice investors to avoid this year's top two sectors Banking and Automobile

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.