Indian market attracted buying in almost all sectors except Auto. The major gainer was Consumer Durables. The Sensex closed at 19799, up 107 points from its previous close, and Nifty shut shop at 5944, up 36 points. The CNX Midcap index was up 1.2% and the BSE Smallcap index was up 1.5%. The market breadth was positive with advances at 95 against declines of 309 on the NSE.

The top Nifty gainers were Sterlite, Ranbaxy, Reliance Infra and Tata Steel and losers included Hero Honda, Jindal Steel, Mahindra & Mahindra and Axis Bank. The FIIs were net buyers with investments worth Rs33.53cr (prov. cash market fig)

Market Outlook

In the next session, NIFTY may face strong resistance around 5990. If sustained below 5900, it may face more selling pressure. However 5860 may act as a good support level. Traders are suggested to sell at rise as long as NIFTY is trading below 5990. Banking and Auto heavy-weights may face major sell off while Power, Fertilizer-Chemical and FMCG may attract buying.

Expected Bullish Stocks

FINANTECH
HINDOIL
VIDEOCON
JSWSTEEL
GSPL
RANBAXY
TATASTEEL
ALBK
TITAN
CHAMBLFERT
HCC
MCDOWEL-N
RCF
SOBHA
NTPC
PETRONET
TECHM
PFC

Expected Bearish Stocks

HEROHONDA
RCOM
AXISBANK
ADANIENT
ASHOKLEYLAND
ICICIBANK
ULTRACEMO
SUNTV
BAJAJ-AUTO
ACC
DIVISLAB
YESBANK
DBREALITY
M&M
JSPL
IDEA
TATAMOTORS
UNIPHOS

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 Highlights

Bajaj Auto, India's second largest two-wheeler maker, will raise prices across its range of motorcycles by up to Rs 1,000 starting January 2011. The continued rising cost of raw material inputs is the main cause for this increase.

Country's second largest two-wheeler manufacturer TVS Motor Company plans to ramp up its manufacturing facility at Hosur in Tamil Nadu as part of meeting "huge" demand for its scooterette Wego. The company had showcased the scooterette in November 2009.

Battery maker Eveready Industries has increased the prices of some of its products by up to 9% due to high input cost They are increasing the MRP (maximum retail price) of the AA batteries by Rs 0.50 with immediate effect.

Economic Updates

Continuing with its trend towards moderation, inflation declined to 7.48% in November 2010, mainly boosted by lowering of pressure on certain food items. Inflation had stood at 8.58% in October 2010. It was 4.50%in November 2009. For September this year, the inflation figure has been revised upwards to 8.93% from the provisional number of 8.62%. The government expects inflation to moderate to 6 per cent by end of the fiscal.