IndiaStar.biz - Indian Stock Market Guide

RBI will come with news/hints about interest rate hike in some form in January, and that will trigger a 5-10% stock down in banks. So trade cautiously in banks, and if you are in investor, you can book profits (if any) and watch the developments in banking over next 30-40 days.

Capital Goods companies obtain many projects in the last quarter and their results in Q4 are usually strong, so it may help to buy Capital Goods companies in that are still not shooting up. For example, Havells India has already moved up 47% in last one month, including nearly 10% just today.
Closing price: 475.90
Gain: 43.10 (9.96%)

Food products and Fertilizers are also likely to do well in Q4.

FII trading activity on NSE and BSE on Capital Market Segment

The following is combined FII trading data across NSE and BSE collated on the basis of trades executed by FIIs on 16-Dec-2009.

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category Date Buy Value Sell Value Net Value
FII 16-Dec-2009 2142.4 2497.65 -355.25

Domestic Institutional Investors trading activity on NSE and BSE on Capital Market Segment

The following is combined Domestic Institutional Investors trading data across NSE and BSE collated on the basis of trades executed by Banks, DFIs, Insurance and MFs on 16-Dec-2009.

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category Date Buy Value Sell Value Net Value
DII 16-Dec-2009 1381.57 1106.65 274.92

Indian stock market has shown immense resilience and has weathered many a storm including the Dubai story.

We are at 5150 on the Nifty and following needs to be taken care by investors going forward.

1. Nifty is at high level and valuations are just about ok.

2. Nifty is tired and short term profit taking can take it down atleast to 4800 in near future.

3. Upside is limited to around 5300-5400 so call buyers and long owners need to be watchful.

4. December is a lean period in West esp. in USA and budget constraints generally push IT billability down - IT expected to go down from its starry heights (Infy, TCS, Wipro).

5. Reliance Industries and Reliance ADAG case is expected to be a long battle. These stocks will tend to move in expectations. Reliance after bonus 1:1 will go to 1000 and consolidate.

6. Stock picks - Reliance, NTPC, Classic Diamond, Satyam, TTML, Reliance Communication, BHEL

7. Sell - Ranbaxy, Infosys, TCS, WIPRO

8. Futures - Short bias, Options - Put bias

9. A bad winter might hit the sector affected by it. Cement and realty to take hit.

10. No major change on interest rates and policy issues.