The Indian markets lost half of their Monday gains in last session; there was not much on either the global or domestic front that could have supported the markets. Today, the start of the penultimate day of the F&O expiry is likely to be soft tailing the listless global cues. Meanwhile, there is report that the government may trim planned expenditure by over Rs 80,000 crore or about 15 percent of the budgeted amount in the current fiscal, in order to contain fiscal deficit within the redline drawn by Finance Minister P Chidambaram. In other development on the macro front, representatives of International Monetary Fund (IMF) have met senior Finance Ministry officials to discuss the macroeconomic situation of India ahead of its world economic growth outlook. There is likely to be some cheer in the sugar sector stocks, as the Food Ministry will soon seek Cabinet nod for providing interest-free loans to cash-starved sugar mills to help them meet working capital requirements. The oil & gas exploration companies too are likely to be in action, as the Oil Minister M Veerappa Moily has ruled out reversal of the decision to double natural gas prices from April 1 next year and said that the notification on this will be issued shortly and has decided to put 86 hydrocarbon blocks for bidding in the round X of New Exploration Licensing Policy (NELP) by January 15, 2014.

BUY Bata India above 1062, for Target of 1110 (2-3 day) and Stop Loss at 1035.

SELL Godrej Industries (Nov Futures) below 264.7, For Target of 250 and Stop Loss at 272.