On December 23, 2010, Indian equity markets remained flat amid low trading volumes and concerns over rising global crude oil prices above $90 per barrel. Healthcare and IT sectors showed some gains, while metals and consumer durables lagged behind, contributing to a negative market breadth. The BSE Sensex dropped 33 points, and inflation data indicated a rise in food and fuel prices compared to the previous week.

1. Market Wrap Up
Dec 23, 2010
Indian equity markets remained lackluster amid alternate bouts of buying and selling in frontline stocks. The markets ended on a flat note
due to lack of support at higher levels. Rest of the Asian markets settled in the negative terrain while European markets opened on a mixed
note. Trading volume in the local markets remains low on account of a series of holidays across the world. Further, macroeconomic worries
caused by a surge in global crude oil to above $90 a barrel level weighed on the domestic bourses. Healthcare and Information Technology
segments witnessed significant traction while Consumer Durables, Metal and Capital Goods counters were the major laggards during trade.
Among broader market, mid-cap and small-cap indices also could not bear the pressure and went down. The market breadth was negative.
The food price index rose 12.13% while the fuel price index climbed 10.74% in the year to 11 December 2010, the latest government data
showed. In the prior week, annual food and fuel inflation stood at 9.46% and 10.67% respectively. The primary articles price index was up
15.35% in the latest week compared with an annual rise of 13.25% a week earlier.
The BSE 30-share Sensex was down 33 points or -0.16% at 19983 while NSE 50-share Nifty ended the day at 5985 down 16 points or -0.27%.
Stocks Performance
Top 3 Sensex Gainers:
Auto Stocks: Ashok Leyland (-3.0%), Apollo Tyres (-2.2%), Tata Motors (-1.2%) NTPC (+1.5%),
Auto stocks fell on worries a recent petrol price hike and a possible diesel price hike could dent demand Sterlite Ind. (+1%),
for vehicles. Moreover, surge in global crude oil to above $90 a barrel level weighed on the automobile Infosys (+0.8%)
sector.
Top 3 Sensex Losers:
Metal Stocks: SAIL (-4.4%), JSW Steel (-3.7%), Bhushan Steel (-1.1%) Hindalco (-1.8%),
Metal stocks fell as base metal prices drifted lower. Copper prices fell dragged down by a sluggish Tata Steel (-1.6%),
performance in Shanghai amid a liquidity drain towards the year-end and a bout of profit-taking after a DLF (-1.3%)
recent strong rally.
Top 3 Sectoral Gainers:
F&O Update HC (+0.7%),
Markets lose 5 points while VIX went down to 19.03% decreasing by 2.07% from Wednesday’s level. At IT (+0.3%),
the money NIFTY option IV were at level of 13.92% on Call side and 14.36% on put side. PCR is at level of TECk (+0.2%)
1.38 which has increased from yesterday’s level while IV has decreased which indicate option writing
rather than hedging activity. On put side Maximum OI is at 5900, 5800, 5700 level while 5900 added
significant open interest today, signifying good support at 5900 level. Call side has maximum OI at 6000,
while 6000 call added maximum open interest today. December NIFTY futures gained premium over the
spot to magnitude of 17 points unchanged from yesterday’s 17 points. We recommend holding on to 5800
December NIFTY put and long trade on December Series strike 5900 Call and put sides. Both positions
have decreased in value but we advocate holding onto the position as we expect significant movement in
underlying on either direction. One may think on entering NIFTY December Series 5800 Put and same
series 6100 Call tomorrow, which should cost around Rs.20.
Disclaimer: This document is prepared by Fullerton Securities & Wealth Advisors Ltd (FSWA). This document is not for public distribution and has been furnished to you solely for your information and you are notified that you
should not further copy, modify, use or distribute the information in any way unless you obtain written consent from FSWA. The information provided in the document is on the "best effort" basis and is subject to change
depending on several factors, including general market conditions. While reasonable care to compile the document but the accuracy and completeness cannot be guaranteed either by FSWA or any other person or entity
associated with it. The returns shown are merely estimates and forecasts and are not necessarily indicative of future performance and can change without notice. The document is prepared only for your information and is not
sufficient for making an investment decision. You should rely on your own investigations and seek professional advice for investment decision. Neither FSWA nor any person connected with it, accepts any liability either arising
from the use of this document or due to any inadvertent error in the information contained in this document. Financial investments carry risks including principal risk and therefore you should seek professional advice prior to
making any investment decision. The risk of any losses occurring by use of this report or document will be entirely yours. The investments covered in this report are not guaranteed. Also past performance of an investment or
fund is not an indication of future performance. FSWA, its affiliates, or associates, or any regulatory or other body or entity assumes no liability or responsibility for investment results or losses arising out of investment
decisions made by you. This document is not to be considered as an offer to sell or a solicitation to buy any security or financial product. FSWA reserves the right to modify or alter the terms and conditions of the use of this
service or discontinue, temporarily or permanently, the information and services provided (or any part thereof) at any time, with or without prior notice and FSWA shall not be liable to you for any suspension, modification, or
termination of the information and services provided herein. www.fullertonsecurities.co.in Page | 1