Indian market reacted positively to RBI credit policy, in an extremely volatile session indices attracted good buying in the final hour of the session. IT, OIL-GAS and METALS appeared as major gainers along with BANKING STOCKS. The Sensex closed at 19864, up 217 points from its previous close, and Nifty shut shop at 5948, up 56 points. The CNX Midcap index was up 0.4% and the BSE Smallcap index was up 0.5%.

The market breadth was positive with advances at 721 against declines of 560 on the NSE. The top Nifty gainers were Suzlon, SAIL, Hero Honda and TCS and losers included Mahindra & Mahindra, Sesa Goa, HUL and Tata Power. The FIIs were net sellers with sales worth Rs -316.79cr (prov. cash market fig)

Market Outlook

In the next session, 5990 may act as a crucial level for NIFTY, sustaining above 5990 may be a good signal for bulls as 5850 has become a good support. Traders are suggested to stay bullish as long as NIFTY holds 5850. Metals, OIL-GAS and IT may remain bullish. Banking may appear volatile.

Expected Bullish Stocks

SUZLON
IDBI
HDFCBANK
PATNI
CANBK
TATASTEEL
RENUKA
TCS
JSWSTEEL
MPHASIS
IDBI
STER
HEROHONDA
HCLTECH
SAIL
AUROPHARMA
APOLLOTYRE
ACC

Expected Bearish Stocks

UNIPHOS
SESAGOA
ADANIENT
M&M
RECLTD
IDEA
MARUTI
RPOWER
RCOM
JETAIRWAYS
EIH
DBREALITY
SINTEX
NAGARCONST
VOLTAS
INDUSIND
ZEEL
TATAPOWER

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

Hospitality firm Royal Orchid Hotels will invest Rs 200 crore in the next eight months for domestic expansion, besides setting up a hotel in Tanzania, Africa from next year. The company which currently operates fifteen properties under the Royal Orchid brand across India is currently adding atleast seven new hotels to its portfolio at locations including Jaipur, Hyderabad, Baroda, Mumbai and Shimoga.

Tyre-maker, JK Tyre and Industries, plans to increase tyre prices by up to 5% from January next year to offset surging raw materials costs, especially natural rubber. JK Tyre plans to double its capacity of commercial vehicle radial tyres to 1.6 million per annum from the present 8, 00,000 tyres per year by mid-next fiscal.

Tata Motors plans to raise prices of all its passenger vehicles except the Nano and the newly-launched Aria by up to 1.5% from next month onwards. The increase is on account of surging input costs.

Economic Updates

RBI kept key policy rates unchanged signaling that maintaining growth momentum was a priority while taking steps to infuse close to Rs 50,000 crore of liquidity. This will ease pressure on banks to raise rates both on lending and deposits in the near term.