Market view equity

 

Market view

The markets traded within a tight range amid high volatility and ended on as flat note. Buying was seen in Realty and Banking counters while Technology sector witnessed selling pressure.   

Nifty:      

Nifty traded within a tight range and ended on a flat note. The double bottom formation at 5847 on 21 Dec. 2012 will act as a strong support for Nifty. The 50 DMA at 5970 will act as an immediate resistance for Nifty. A close above this level will further extend the rally up to 6050/6100 until then expect selling pressure to continue at higher levels. 

Investment Ideas

Mahindra & Mahindra @ Rs. 883 (Target Price: Rs. 1100)
Mahindra & Mahindra CMP @ 883
• M&M’s Q3FY13 operating performance was in-line with est
• Automotive Segment (AS)- new launches drive growth ; 100 bps QoQ decline in
margin on seasonal/one-time costs; UV vol. traction to remain better than rest of
the auto sector
• Tractors continue to report resilient margins (+70 bps QoQ) despite weak
volumes, indicating pricing discipline – volume outlook continues to remain
muted
• We have broadly maintained our estimates and retain our ACCUMULATE rating
on the stock with a TP of Rs 1,100
• M&M is our preferred pick to play the domestic 4-wheeler space as we see
lesser downside risk to volume/growth estimate as compared to MSIL/AL


JM Financial (Target 26)

Tv18 (Target 38) 

 Unitech (Target 45) 

Zee Ltd (Target 260). Traders maintain stop loss accordingly.