Again Indian market faced heavy selling pressure in almost all sectors. Realty and Consumer durables appeared as worst performers. The Sensex closed at 19242, down 454 points from its previous close, and Nifty closed at 5766, down 137 points. The CNX Midcap index was down 3.6% and the BSE Smallcap index was down 5.7%. The market breadth was negative with advances at 64 against declines of 1254 on the NSE. The top Nifty gainers were Infosys, Wipro and ITC and losers included Reliance Infra, Suzlon, RCom and Hindalco. The FIIs were net sellers with investments worth Rs 1296.3 cr (prov. cash market fig)

Market Outlook

In the next session, NIFTY and SENSEX closing would be very crucial for market trend. NIFTY closing below 5690 and SENSEX closing below 19000 may indicate bearish market. Auto, Real-Estate and Banking heavy weights may face heavy selling pressure while selected IT and Pharma stocks may show strength. However, traders are suggested to follow the strategy of selling at rise for intraday.

Expected Bullish Stocks

WIIPRO
MPHASIS
DRREDDY
GTLINFRA
WIPRO
SUNPHARMA
WIPRO
TCS
OBC
INFOSYSTCH
HCLTECH
TECHM
ITC
RANBAXY
IRB
SJVN
GAIL
ASIANPAINTS

Expected Bearish Stocks

HINDOIL
HCC
IFCI
PANTALOONR
CENTRALBANK
NFL
ICICIBANK
GESHIP
CHAMBLFERT
HDFCBANK
EDUCOMP
WELCORP
UCOBANK
ABAN
DISHTV
NAGARCONST
GVKPIL
FINANTECH

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

Navin Jindal-led Jindal Power is likely to launch Rs 7,000 crore initial public offer (IPO) before March 2011. The company had earlier said the proceed of public offer would be utilized to fund it's around Rs 22,000-crore expansion projects in Chhattisgarh and Jharkhand.

Tata Motors has told its vendors that it will raise production of Nano, hoping to build confidence after the small car sold only 509 units in November. Nano vendors, worried over falling sales and cut in production, have met the automobile major's top brass in Mumbai.

Heavy Engineering Corporation Ltd is contemplating entering rail coach manufacturing segment soon. HEC is considering manufacturing passenger and freight coaches, The Company had discussions with Italy's leading coach manufacturing company Keller in this regard at Ranchi.

Tyre manufacturer in India may hit hard as the Industry is facing Natural Rubber Shortage of over 1,00,000 ton, the current demand for Natural Rubber stands around 9,50,000 ton where as the supply (including Imports ) is near to
8,50,000 tons,. The mismatch between demand & supply is expected to be over 5, 00,000 tons by 2013-14. The prices for NR is expected to settle near 200/kg during short span of time.

Economic Updates

India's food price index rose 8.69%, while the fuel price index climbed 9.99% in the year to Nov. 27 2010. In the prior week, annual food and fuel inflation stood at 8.60% and 9.99%, respectively. The primary articles price index was up 12.66% in the latest week compared with an annual rise of 12.72% a week earlier.