Morning Bells (2 Jan 13)

Good Morning Friends.

Life which you are living now is also a dream of millions… Love it, Live it, Value it and be happy what you are.

As told you repeatedly I see market is still in uptrend and people can join the party if they have missed the bus in 2012 as I see good gain till budget say around or more than 12-15% gain unless and until no bad news come out in the way of new highs.

So start was as per expectations and the new year has begun with good cheer as the Indian indices got off to a pleasant start and kept their gains till close. The trigger this time was lawmakers in US finally steering clear of the fiscal cliff at the eleventh hour. The US Senate cleared the agreement that raises taxes on family income of over $450,000, increases taxes on capital gains and dividends for those households to 20%, and delays for two months $110 billion in spending cuts.

But its still not a sign of relief, as the US Treasury Secretary Timothy Geithner has communicated to US Congress that the country has reached its borrowing limit of $16.4tn because of which the government has been left with no option but to employ "extraordinary measures" to avoid default

The rally in Indian market was driven by rate sensitive sector like Banks, Real estate and Metals on hope of RBI cutting rates during the January meet. The Nifty has finally broken out from the tight trading range, which prevailed during entire December. With closing above, the resistance level markets given sign for a good year ahead.

The gainers were Jindal Steel (3.3%), Hindalco Inds. (2.7%),  Tata Steel (2.3%),  ICICI Bank (1.9%), BHEL (1.9%),  Sterlite Inds. (1.9%) and  Maruti Suzuki (1.8 %). The losers in the Sensex were NTPC, Infosys and Hero Motocorp. Reliance Infra shot up almost 4.6% while Jindal Steel was up 3.5% and were the top performers on Nifty and Sensex.

As also told - Pvt. Banks, Auto sector, Metal sector seems major contributor for this move, y’day banks & Metals were major contributor for a cheerful start.

Finance Minister P Chidambaram will start pre-Budget consultations with various stakeholders from January 2. The first meeting is with agriculturalists on January 2. It will be followed by a series of interactions with sectoral experts, industry captains and economists to get their feedback and inputs for possible incorporation in Budget 2013-14. Chidambaram will present the Budget 2013-14 amid the economic slowdown.

Highlights of 2012 –

Best Sectoral Performance of 2012: Real Estate : +58% in spite of <27% return from 42% of the index..(DLF/GPL/PARSV were the laggards). 2nd Best Index : FMCG +50%...
  Year of Broader mkt recovery: 53 stocks gave more than 100% return in 2012 (range being +800% to -90%). Among these, the only names with more than 20 BUYS at the start of 2012: Shree Cement / Sobha Developers…
  Biggest Drag on Nifty in last 5yrs: RIL – the darling of investors once upon a time. RIL (-313pts) vs Nifty -175pts; and ITC (+330pts).
  Biggest Drag on Nifty in Last 3yrs: RIL (-135pts) vs Nifty +735pts; and again ITC (+285pts).

(IIFL.com)

MARKET OUTLOOK –

Levels to be watched closely 5835 & 5885, both has good support while resistance seems 5950-5980-6040

The INDIA VIX on NSE was down 8.43% and ended at 13.69 against 14.95 and FNO PCR is 1.02.

The Indian currency gained after the US Senate voted in favour of averting the fiscal cliff. Hopes are the inflows will continue following the development.

The rupee rose 0.6% and ended at 54.68 than its previous close of 54.99.

S&P 500 (US) was trading at 1426.19 up 23.76 at the time of writing M Bells.

NIFTY OUTLOOK –

Nifty is in range of 5835-5885-5990-6040 for current week.

STOCK OUTLOOK -

(Stock outlook needs to watch stock movement carefully and then one can bet after having a look, I tried to put related info which will help you in taking positions.)

Auto Sector – to shine in first quarter of 2013

Metal Sector - to shine in first quarter of 2013

Realty Sector - to shine in first quarter of 2013

Pvt. Banks - to shine in first quarter of 2013

============ OPEN CALLS ============

# Please remember when I make special remark with any position then one should need to take care of that else you can make loss instead of profit.

# Be with strict SL and don’t hesitate to book even small profit if Nifty doesn’t shows strength.

Dishman - @118 for TG 130+ SL 107

DB Corp – @219 TG 240+ SL 201 (1-4 Week)

============ INVESTMENT BASKET ============

(Stock in this section is with view of 3 months to 1 year)

Mahindra Holiday – @334 TG 375+ (Active from 15 Dec 12) CMP – 341 (Gain +2%)

Satyam Computer – @103 TG 130+ (Active from 15 Dec 12) CMP – 106.55 (Gain +4%)

LakshmiVilas Bank – @105 TG 125+ SL 97 (Active from 27 Dec 12) CMP – 104.4 (Gain -3%)

On Mobile – @44 TG 60+ SL 41 (Active from 01 Jan 13) CMP – 48.7 (Gain +10%)

============ HOT SHOT ============

Keep eye on following stocks, if Nifty shows strength then these stock can give you reasonable return in very short term –

Today’s MG Mantra –

Enjoy the ride.

Have a Profitable day – MG

Disclaimer –

1. I have shared my view as per my limited knowledge; please use your own skills to make a wise decision before execution of trade or consult your financial advisor.

2. Those that don’t have patience and are not willing to book loss also in cases don’t enter this market.