Indian market oscillated above and below the dotted line throughout the session. Mid-cap faced major sell off. In the firm global cues, Auto and IT stocks appeared strong. While other sectors faced profit booking. Sensex closed at 19966, down 25 points and Nifty at 5992, down 18 points from the previous close. CNX Midcap index was down 1.8% and BSE Smallcap index was down 3%. The market breadth was negative with advances at 206 against declines of 1107 on the NSE. Top Nifty gainers were Hero Honda, Dr Reddy's and Jindal Steel & Power while losers included DLF, Reliance Infrastructure and Jaiprakash Associates. The FIIs were net buyers with investments worth Rs 603.47cr

Market Outlook

In the next session, NIFTY is expected to trade in the range 5959-6030, sustaining beyond the range either side may decide the trend. Traders are suggested to trade according to the given range. IT and PHARMA may attract buying while Real-estate and Banking may face selling at higher levels

Expected Bullish Stocks

NMDC
JETAIRWAYS
HUL
DABUR
BAJAJ-AUTO
INFOSYSTCH
TCS
WIPRO
EXIDE
LT
ABB
GRASIM
HCLTECH
TATACOFFEE
JINDALSTEL
KOTAKBANK
ICICIBANK
VIJAYABANK

Expected Bearish Stocks

WELCORP
VIDEOIND
RELINFRA
MARUTI
SBIN
PUNJLLOYD
TATAPOWER
ORBITCORP
IBREALEST
DLF
HDIL
JSWSTEEL
BHUSHANSTEEL
OBC
SYNDIBANK
APIL
VOLTAS
UNITECH

Fundamental Picks

Investors with a horizon of 6-12 months can consider following scrips for their investment. These companies have potential to give higher returns than index over a long term.

DIC India Ltd has achieved its target of Rs. 340
First Leasing Ltd has achieved its target of Rs. 92
GEI Industrial Systems Ltd has achieved its target of Rs. 170
Dena Bank has achieved its target of Rs. 108
Visaka Industries has achieved its target of Rs. 180
Aarti drugs has achieved its target of Rs 135
Indoco Remedies has achieved its target of Rs 465, call given at Rs. 388
Riddhi Siddhi Gluco Biols has achieved its target of 258, call given at 216
Ess Dee Aluminium has achieved its target of Rs 520
TNPL has achieved its target of Rs. 115

Corporate News

Dalmia Bharat Enterprises (DBEL) will invest Rs 2,500 crore to set up two plants in Meghalaya and Karnataka of a cumulative capacity of five million tonnes per annum (mtpa). They will invest Rs 2,500 crore in the two plants coming up in Karnataka and Meghalaya. The total capacity of the two plants will be 5 mtpa - both having 2.5 mtpa each.

GVK Power & Infrastructure has formed a joint venture with Malaysia based Leighton International to enter the mine operating & development space. Both the companies are jointly bidding for the Gare Pelma II Coal Block contract in Chhattisgarh. Gare Pelma II Coal Block is owned by Maha Tamil Collieries. The total coal reserve of Gare Pelma II is around 768 million tones.

Civil Aviation Minister Praful Patel has rejected airlines' compromise formula on fares, which will delay the return to profitability of Kingfisher Airlines and Jet Airways. Airline companies suggested shifting to distance-based airfares, instead of an arbitrary one that is seen to be driven by demand-supply forces. The ministry officials and industry representatives will meet again. Airlines such as Jet Airways , Kingfisher Airlines, SpiceJet and Air India have increased fares in the past few months on higher demand. Fares to certain sectors shot up by as much as 200% during the festival season as airlines were resorting to disproportionate hikes at the last minute.

Economic Updates

India's services sector expanded at its fastest pace in four months in November 2010, indicating that the biggest contributor to the country's gross domestic product, or GDP, was firmly back to high growth path. The HSBC Business Activity Index, a purchasing managers' index (PMI) for services, rose to 60.1 in November 2010 from 56.2 in October 2010. A reading in excess of 50 on PMI, a survey based index, shows expansion, below that contraction.

The country's foreign exchange reserves fell by over USD 4 billion to USD 293.98 billion on the back of a heavy fall in foreign currency. The country's total foreign exchange kitty stood at USD 297.99 billion the week before and this is the second consecutive weekly falls. Foreign currency assets, a major component of the forex kitty, fell by USD 3.92 billion to USD 265.55 billion for the week ended November 26 2010.