Key benchmark equity indices settled in the flat territory on Monday led by the late selling from investors. Markets started the day on a strong note tracking positive indications from Asian equities and good trade data from China for the month of December. In the late trades, selling activity got intensified as investors opted to take profit off the table in blue-chip stocks ahead of the result from IT major - Infosys. Buying remained evident in realty, technology and auto sector stocks. On the other hand, shares from oil & gas counter shed the most during the day. Healthcare, fast moving consumer goods and banking stocks also failed to hold at higher levels. The comments from the deputy chairman of the Planning Commission Montek Singh Ahluwalia that Indian economy is likely to move back to a high growth path by end of the current Five-Year Plan, could not trigger huge buying in front line stocks as the valuations have already become expensive. Meanwhile, marketmen continued their buying spree in mid-cap and small-cap indices on the expectations of better investment opportunity. New listing, MBL Infrastructures listed at a premium on the bourses and shut shop with gains of around 14%. Finally, the 30-share BSE Sensex shed 13.58 points or 0.08% to close at 17,526.71, while the 50-share S&P CNX Nifty added 4.65 points or 0.09% to end at 5249.40.

The US markets closed mixed on Monday, Dow and S&P 500 touched their fresh 15 month high as shares of big manufacturers advanced on strong Chinese economic data. Though, the trade of the day signaled that investors still remain cautious. Hopes that global manufacturing activity is heating up, lifted industrial stocks. Earnings reports begin arriving in greater numbers next week and will shape traders' assessment of the economy. The Dow Jones Industrial Average closed up by 45.80 points, or 0.43%, to 10,663.99. The S&P 500 index gained 2.00 points, or 0.17%, to 1,146.98, while the Nasdaq lost 4.76 points, or 0.21%, to 2,312.41.

The crude prices declined on Monday after their continuous rally. Though the Chinese crude import numbers has boosted the prices but the milder forecast of weather halted the rise in crude prices. US Northeast temperatures were expected to average below normal through Wednesday. Benchmark crude for February delivery fell 23 cents to settle at $82.52 a barrel on the Nymex Monday, despite signs of strong demand from China and a weak dollar. In London, Brent crude for February delivery fell 40 cents to settle at $80.97 a barrel on the ICE Futures exchange.

The Indian rupee went for a rally on Monday and touched its 16 month high. In its intraday trade the domestic currency touched 45.28/29 it's strongest since September 22, 2008. The US dollar plunged to its weakest in last six weeks against other major currencies and led the rise in rupee, but it was the dollar buying by the PSU banks in last hours that a bit halted the sharp rally of the currency. Finally the rupee closed at 45.33/34, 44 paise higher compared to its Friday's close of 45.77.

The FII on Monday were the net buyers in both equity as well as debt segments. In equity segment the gross buying was of Rs 3268.30 crore against gross sell of Rs 3117.60 crore, while in the debt segment the gross purchase was of Rs 764.00 crore with gross sales of Rs 608.60 crore.

The US markets closed mixed; though the Dow and S&P 500 touched their fresh high the mood of the investors remained cautious. The Asian markets have made a weak start and almost all the indices are trading in red today. The domestic markets remained in a consolidation mood in previous session. Today is a happening day for the markets IT major Infosys along with Bajaj Auto and JP Power will be announcing their third quarter numbers. Infosys is most likely to report inline results for the quarter while the general view is that the company will raise its guidance for the fourth quarter.Also today IIP numbers will be announced and the investors will closely look for that number too

Support and Resistance: S&P CNX Nifty and BSE Sensex

                                                          Nifty Top volumes

• Unitech has reported that it booked sales worth Rs 55.5 billion between March 25 and the end of 2009.
• Reliance Industries has raised about Rs 34.65 billion through the sale of 33 million treasury shares at the rate of Rs 1,050 per share. 
• Suzlon Energy has won a repeat order from Gujarat Alkalies & Chemicals (GACL) to set up, operate and maintain a 21 MW wind energy project at Maliya Miyana. 
• DLF has identified an overall new organisational structure, now it will be broadly divided into three units -Devco, Rentco and the holding firm dealing with corporate functions.
• Maruti Suzuki is planning to bring new versions of its best-selling cars Alto, WagonR and Swift that may be cheaper than the existing models.