Weekly News Letter - 15th to 19th Dec.

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Weekly News Letter 

Positive week. Good global cues. Falling inflation . Rate Cuts.

All the above reasons helped the markets to move upwards.  SENSEX is a few hundred points away from touching 5 digit mark.

Auto stocks rallied in beginning of the week because of excise duty cut, but later gave up all its gain as the US auto majors didn’t get bailout.

We had smart recovery on Friday though all Asian and European markets were down.

FII’s are now buying a bit from Indian Markets.

(FII Activity is last week)

Date                Buy Value               Sell Value          Net Value

12/12/2008      1,520.00                 1,536.52               -16.52

11/12/2008       2,051.21                1,607.03                444.18

10/12/2008       2,603.96                1,653.31                950.65

08/12/2008       1,670.12                1,319.78                350.34

The full impact of the rejection of the auto bailout package in the US may be felt in the week ahead across global markets. On the domestic front, the disastrous IIP number sent some fresh shock-waves and with a bleak outlook for Q309 results, the signs appear ominous.

More over most of the major economies are headed for recession.

India GDP forecast is being revised too often.

Sector I am bullish on in the coming week.

• Pharma.
  
• FMCG.
  

 

Sector I am bearish on in the coming week.

• Automobile.
  

Stocks to watch out in the coming week are.

Tata Motors – Auto stocks can plung. It has a good support at 128 and is a good buy for long term at that level.

ITC and HUL – Pharma stocks won’t give fast returns and also wont make you loose your money. ITC support at 158 and resistance at 181. HUL support at 219 and resistance at 252.

M&M – This will have a direct effect on failure of US auto bailout. It has a good support at 260 and resistance at 325.

An uncertain week ahead.

Happy Investing.

Chirag Jethmalani