T20_16Dec2010

Global Markets
1. S&P 500 is surging ahead, indicators still positive – will it continue to sprint? S&P Chart
2. US Senate Democrats and Republicans, in a rare display of bipartisanship, headed towards passing President Barack Obama s sweeping deal to extend expiring tax cuts for millions of Americans.
3. US dollar – Moves down from the strong resistance levels of 81.73, momentum still negative Dollar Chart
4. Crude consolidating at 88-90 range, may rises further on supply woes Oil Chart
5. Gold at 1400 level , rise above 1431 is expected on weak dollar Gold Chart

Economy
6. IIP at 12.5% vs 9.1% (MoM) – Numbers took the street by surprise, lifted the spirits of a flailing market
7. 10-year yield seen between 8.05-8.10%
8. Wholesale price index rose 7.48% in November compared with 8.58% in October: Expectations rife that rate hikes likely over the next quarter as well
9. Advance tax payments for the quarter ending Dec, 2010 hits a new high
10. India has rejected the proposed free trade agreement with China: India already has large trade deficit with China; currently accounts for 11% of China’s exports while China accounts for only 6.5%

Indian Markets
11. Nifty makes a strong resistance at 5960, a break above this will see it safely land above 6000 levels Nifty Chart
12. FIIs Net Sale in Indian equities is -3,598.31 and DIIs net buy is 1,929.55

Sectors
13. Oil Prices are hiked by Rs.2.96/lt – Oil stocks begin to buzz on this backdrop
14. Banks likely to face pressure ahead of RBI quarterly review scheduled on 16 Dec, 2010
15. Power sector may see $1 billion PE inflows in six months
16. Cement industry's despatch for Nov'10 has declined by 2.9% and for YTD (Apr'10-Nov'10) increased by 5.8% on yoy. Cement prices have started softening in most of the regions and gone down by around Rs 10-25/bag.

Stocks
17. IFCI inc. stake in TFCI to 37.36%, looking for taking majority control. IFCI Chart
18. SCI slips below its FPO price of Rs. 140 SCI Chart
19. Wipro looking to acquire companies in Latin America and Africa Wipro Chart

Quotes
20. “Operations for profit should be based not on optimism but on arithmetic.”- Benjamin Graham