Nifty Choppy

Equity extended gains as the policy rates hike by RBI came in on expected lines. The Nifty too hit the 5800-mark but more than half of the gains immediately got wiped out after the central bank's forecast about GDP growth and inflation.

Inflation forecast has been revised to 7% from 5.5%, which is likely to moderate in Q1FY12, RBI says. "Policy action will contain spill over to generalised inflation." The bank also says, GDP growth rate may decline in FY12.

The RBI upped repo, reverse repo rates by 25 bps each to 6.5% & 5.5%, respectively. Even 1% SLR leeway has been extended till April 8.

Experts believe that the RBI will continue with raising rates going forwards. Nomura said, "Rate hikes likely in coming policy reviews."

C Rangarajan, chairman of the Prime Minister's Economic Advisory Council said RBI has taken the right decision. He expects RBI to continue with raising rates going forward.

Bankers like Bank of Baroda and IndusInd Bank said they might consider lending rate hike.

The BSE Bankex was down 0.2% which rallied nearly 1% on announcement of rate hikes. SBI, HDFC and Kotak Mahindra Bank were up 0.65-1% while ICICI Bank tanked 1.5% and PNB fell 0.8%. Axis Bank and HDFC Bank were marginally in red.

The 30-share BSE Sensex was trading at 19,208, up 57 points and the 50-share NSE Nifty went up 18 points to 5,762. About 738 shares advanced as against 526 shares declined on National Stock Exchange.

Power, capital goods, FMCG, telecom, metal and technology companies' shares were quite supportive. Even oil marketing companies' were on buyers' radar as they are likely to get subsidy soon, according to sources. BPCL rallied 4.6%.

In midcap space, BF Utilities, Money Matters, Shriram City, eClerx Services and Emami gained 4-7% while Simplex Infra, BOC India, SKS Microfinance, Raymond and Apollo Hospital fell 2.5-4.5%.

In smallcap space, Hercules Hoists, Century Enka, Dion Global, Sahara One and Zenith Infotech jumped 7-10.7% whereas Balkrishna Inds, Centrum Finance, Premier, Lloyds Metals and Sanghi Inds lost 3.6-5%.

Sensex over 100 points

At 15:00- Sensex volatility was still a small holding gains 100 points, the Reserve Bank to meet the quarter prior to policy support led by financial stocks. Giants like ONGC, BHEL, NTPC and Infosys metals, real estate, cement and metal companies, other major winners were selected stocks followed.

However, Anil Dhirubhai Ambani Group, the private sector, power and telecom stocks, Reliance Industries, Wipro, TCS, SAIL, Hindalco experience, Sesa Goa, Cipla and Bajaj Auto were together with the selling pressure.

19138-131 share BSE Sensex is trading at 30 points and 50-5740 share Nifty was up 44 points.

Big hat SBI, ONGC, Tata Steel, BHEL, HDFC Bank and Axis 2.5 to 4% increased. However, Wipro, Reliance Industries, Reliance Communications, Cipla, Reliance Infrastructure and Sesa Goa slipped 1.5-2.5%.

SBI, ICICI Bank, KSK Energy Ventures, LIC Housing Finance, Reliance Industries, Axis Bank and Tata Steel shares were the most active markets.

Midcap space, from 7.5 to 10% Monnet Steel, Core Projects, Prestige Estate, National Fertilizer and KSK Energy Ventures and collected Sunteck Realty, KGN Industries, Jyothi Labs, Gujarat NRE Coke and Radico 2.7 Khaitan fell to 5, 5 %.

Small cap space, TTK Prestige, Odyssey Financial, TTK Healthcare, Hawkins Cookers and Cambridge Solutions Kennametal, Modern India, 11-20% jump during the premiere, from 5 to 9.5% Madhucon projects and Rossell Tea lost.

Nifty hits 5750

11:53 Financial, Capital goods buy suit, covering consumer goods, metal and car industry giants ONGC and NTPC 5750 the upward trend, former Reserve Bank quarterly policy may be one reason for last move above small scale with benchmark Nifty "stock decline.

Ambareesh Baliga of Karvy Stock Broking says, though he sees a chance for a pullback rally, but he will not be enough. "We can look back for a 60-70 score to beat, but not much, only to fight back would mean," he says.

"With each higher level, we see sales coming in FII are clearly a party, a trader in the market, so that back I really do not see the fight lasting more than 60-70 points" they points.

However, upside limited by Anil Dhirubhai Ambani Group to sell and telecoms stocks, Reliance Industries, Wipro, Tata Power, Dr Reddy's Laboratories and the cell together.

19175-167 share BSE Sensex is trading at 30 points and 50-5749 share Nifty was up 52 points. The broader indices were following the same trend, the BSE Midcap and Smallcap indices were 0.8% each.

In front liners, 2 to 4.4% of SBI, HDFC, ICICI Bank, Tata Steel, BHEL and Axis Bank collected. However, Wipro, Reliance Industries, Reliance Communications, Reliance Infrastructure, Tata Power and Siemens were 0.7 to 2%.

Midcap space, 5-10% Monnet Steel, KSK Energy Ventures, sanwaria Agro, Wockhardt and money matters, collect KGN Industries, Kirloskar Oil, Gujarat NRE Coke, the Polaris 2 was down to 4.4% and Parsvnath.

Small cap space, the Odyssey, Finance MSP Steel, Shristi Infra, Indiabulls Securities and Cambridge Solutions Kennametal 8-16% during jumped Surana Inds, Rossell Tea, Hindustan media spectacle and 5 to 9.5% of information is lost.

Oil heads for 2% weekly drop

More than 2% of oil on Friday was on track for weekly decline, its lowest level in ten days for all categories of the business and demand from China's tightening monetary policy to keep in stock on speculation the U.S. will increase . 

Brent crude in March, 4 cents higher to 96.62 dollars a barrel U.S. on Thursday after touching $ 95.43, the lowest intraday price since Crawl 11th January A week ago, before U.S. $ 99.20 month contract, touched its highest level since 2008. 

Consumers International Energy Agency (IEA), represented by the global economic recovery, rising crude oil prices have raised concerns about the potential impact, for the Petroleum Countries (OPEC) production to increase pressure on the organization strengthened. 

 "A rapid transition to identify the performance of a three-digit price, we do not negatively affect the mood and slightly cautious inventory purchases and management related to the soft sound, now we can add in the near future expect to generate are ", said JP Morgan analyst Lawrence Eagles lead. 

"OPEC production to get there on a Monday morning office is an increasing risk increases dramatically" the bank said: "We believe that the time for investors to reduce mercury exposure and get some benefits. 

U.S. benchmark crude West Texas Intermediate (WTI) premium against Brent was at $ 6.99 to close Thursday, compared to $ 8.24 a week ago, the biggest since February 2009.
U.S. crude oil inventory of 2.62 million barrels in the week ended rose 14 U.S. Energy Information Administration data from the 400,000 barrel drawdown in gasoline and distillates stocks for January defying the predictions than expected showed up, 4.4 and 1 million barrels respectively. 

In seven weeks, investors worried the first floor, down the list to be quite Trans Alaska pipeline shutdown was due to the dissolution of the domestic production expected to make.
U.S. crude oil production from the path normally ships 12% and has been in operation again on Monday also resume maker, later revealed as a bypass to repair a crack to avoid January 8. Around 630,000 barrels per day to do this to the normal rate was expected to ramp up next week. 

China's GDP forecast for the fourth quarter rose to leadership and raised concerns that the rising growth, inflation. Investors worry that a hard landing in China in 2011 all the steps to lead the market growth may slow. 

U.S. crude for March 9 cents to $ 89.71 on Friday added more than 1.8% in the week. February contract on Thursday, billing at $ 88.86 expired.

Recommendations This Week - January 24 - January 28, 2011

Company	Recommendation	CMP (Rs.)	Target Price (Rs.)	Stop Loss (Rs.)
ORCCHE	Buy	320.3	346.0	305.0
DENBAN	Buy	109.0	118.5	103.8
OILNAT Feb Futures	Short	1115.6	1030.0	1170.0

NOTE : this are just our technical views on market & stocks we don't recommend any kind of buy or sell call from this to our readers & viewers.