Morning Bells (3 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.

Ah!, Nifty gain 90+ points in New Year and hit 2 year high, Nifty crossing the psychological 6000 mark intra-day; the last time it touched these levels was in Jan 2011, what a start.

The "fiscal cliff" crisis was averted after the House of Representatives approved a Senate bill that raised tax for the rich and delayed spending cuts. The House voted by 257 votes to 167 to pass the original bill with minority Democrats joining a smaller number of majority Republicans to pass the legislation.

Since Nifty breached 6000 mark first in a two year, it would tempt to a lot of retail investors to enter the market.

Companies which propose share buybacks merely to stabilize their sagging share price rather than for the stated purpose of improving shareholder value, may no longer find it easy to fool shareholders and the regulator. The Securities and Exchange Board of India has proposed stringent rules for share buyback so that company managements are held to their word. Sebi has issued a discussion paper on its proposals and sought public feedback by January 31.

RIL, SBI, ICICI Bank, Tata Steel, Hero MotoCorp,  Sun Pharma, ICICI Bank, NTPC, Bharti Airtel, Sun Pharma, BHEL, HDFC, ONGC, Dr Reddys Lab, Bajaj Auto, Tata Motors, Hindalco Inds, are among gainers while Infosys, TCS, Wipro, Coal India, HUL, M&M were among losers in Sensex and Nifty.

Sector wise - Oil and Gas, HC, PSU, Power, Realty, Metal, Teck, Oil and Gas, Consumer Durables, Bankex, Capital Goods, Metal, were the gainers while Realty, IT, FMCG indices are the losers.

So start was as per expectations now next trigger for market will be RBI monetary policy outcome.

MARKET OUTLOOK –

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

The INDIA VIX on NSE remained flat, down 0.02% and ended at 13.71 against 13.69 and FNO PCR is 0.91.

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 gain and ended at 54.35/36 than its previous close of 54.68/69.

S&P 500 (US) was trading at 1453.19 up 27.00 at the time of writing M Bells.

NIFTY OUTLOOK –

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

Resistance comes to 6005 – 6012 – 6029 and supports at 5981 – 5969 – 5957.

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.)

Reliance Power –

Reliance Power commissions 600MW Butibori thermal power plant, the first 300MW unit achieved full load in earlier this year in August.

Reliance Power has synchronised the second of the two 300MW units of its Butibori Thermal Power Project near Nagpur in Maharashtra. The Unit has been synchronized on 2nd Jan '13 in the early hours and simultaneously coa firing of the unit has been achieved.

IT Sector –

One should expect the worst from the IT companies, not just Infosys , for this quarter. It has been a challenging quarter for them. I do not think they will benefit as much from the rupee as well. So, by and large, the result should be flat, maybe slightly declining as well.

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 (CMP 116)

DB Corp – @219 TG 240+ SL 201 (1-4 Week) (CMP 231)

Rel Capital – @498 TG 520+ SL 490

Rel Infra – @546 TG 565+ SL 537

ICICI Jan 1200CE – @27 TG 40+ SL 21 (2 lot)

============ 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 – 107 (Gain +4%)

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

On Mobile – @44 TG 60+ SL 41 (Active from 01 Jan 13) CMP – 49 (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 –

Profit booking not ruled out. US & EU market will give strength.

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.