Old resolutions in new year!

"Good resolutions are simply checks that men draw on a bank where they have no account." - By Oscar Wilde.

The first trading day in the New year is here and bulls will hope there are no hangovers owing to the extended weekend. Many markets around the world are shut for extended New Year holidays. Asian markets which are open for trading are mostly positive. We expect the bulls to shake off any weariness and kick off 2011 on a bright note.




US stocks closed mixed in Friday’s truncated session while European benchmarks finished in the red. On the whole, most asset classes had a pretty good year in 2010.

Naturally, there will be a lot of conjecture on how 2011 will unfold. It will take a while to have any grip on the prospects for the New Year. So, don’t be too anxious and focus on the short-term horizon, which appears to be fairly okay.

The key indices may advance further and if the momentum is strong enough, we could see new highs in the coming days. The bulls' collective resolution seem to be a new high for the indices this year if not this month itself.

Steel stocks will be in action amid reports of a price hike. Auto space will be in focus in the wake of robust December sales. Banks for sure will also be in the spotlight after jacking up lending rates over the weekend.

Patni Computer might be under some pressure amid reports that the much anticipated announcement of stake sale to iGate has been postponed. Airlines may also attract some attention after oil marketing companies raised ATF prices. Airlines have responded by increasing the fuel surcharge.