Indian market traded in an extremely range bound volatile session. Banking and FMCG appeared as major losers while Oil-Gas appeared as biggest gainers.

The Sensex closed at 19934, down 46 points from its previous close, and Nifty closed at 5976, down 15 points. The CNX Midcap index was down 1.1% and the BSE Smallcap Index was down 1.6%. The market breadth was negative with advances at 322 against declines of 980 on the NSE. The top Nifty gainers were NTPC, Hindalco, ACC and GAIL and losers included Axis Bank, ICICI Bank, Kotak Mahindra Bank and SBI. The FIIs were net sellers with investments worth Rs 522.83 cr (prov. cash market fig)

Market Outlook

In the next session, NIFTY is expected to trade in the range of 5930-6030, sustaining beyond the range may decide the market trend. Banking stocks and Realty may face more selling at higher levels while Metals, IT and Oil-Gas may attract buying. Traders are suggested to be cautious of long positions if NIFTY traded below 5930.

Expected Bullish Stocks

PIRHEALTH
TCS
NTPC
JISJALEQS
WIPRO
BAJAJ-AUTO
HINDALCO
GSPL
ONGC
BEL
ACC
GAIL
TATAMOTORS
EDUCOMP
TECHM
INFOSYSTCH
SUNPHARMA
BHARTIARTL

Expected Bearish Stocks

OBC
JSWENERGY
OPTOCIRCUI
ALBK
APOLLOTYRE
PFC
INDIANB
PNB
HAVELLS
SHRIRAM TRANS FI
VOLTAS
NEYVELILIGNITE
AXISBANK
NAGARCONST
SUZLON
UCOBANK
DISHTV
DLF

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
Ballarpur industries has achieved its target of Rs 43
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

Pipe manufacturer Welspun has received new orders worth Rs 1,670 crore from the international markets. The new pipe and plate orders will be executed over a period of one year. The company's current order book stands at Rs 6,150 crore, excluding orders being executed in the current quarter.

RPG group company CESC Ltd announced its foray into hydel power generation in Arunachal Pradesh by constructing a 90-MW hydel power project at a cost of Rs 630 crore. CESC vice-chairman Sanjiv Goenka said the company had signed a Memorandum of Understanding with the Arunachal Pradesh government for construction of the 90-MW Jarong Hydro Electricity project in West Siang district, which is expected to be commissioned in
2015-16.

State Bank of India , the country's largest bank, has raised deposit rates by 50 to 150 basis points (bps) giving a clear indication that lending rates are set to rise by the end of this month. The bank will offer 8.50% for 555-days and
1,000-days deposit.

To meet the high level of demand coming in mostly from rural India, Mahindra & Mahindra Financial Services (Mahindra Finance) plans to raise up Rs 570 crore through institutional placement of equities by mid-January 2011. The non-banking finance company (NBFC) and the financial services arm of country's largest utility vehicle-maker, Mahindra and Mahindra, has already received its Board approval for the same.

Economic Updates

India's fiscal deficit will not be more than 5.5% of its gross domestic product in the current fiscal year to end-March 2011, tabled by the Finance Minister Pranab Mukherjee in parliament on Tuesday. India's average headline inflation is seen at 8.98% in the year ending March 2011 and the economy may grow by 9% during the same period. Average food inflation will be 19.95% this fiscal year.