Market outlook for 29/10/09

On previous day nifty continued the downward journey but took support at 4785 and closed at 4826 -20 points.

• FII data sold in cash.
• F&O nifty future added 6 lakhs net in the down market.
• Option writings: more addition at calls 4800.
• US markets down to down (rally may be over and leading to new lows within six months to one year)
• Global cues are red severe selling observed in all the markets.
• SGX nifty in deep red.

Over all view: The downfall has to be stopped at 4780-4740-4720, or 4600 to 4580 is possible on Friday. But, then there may be some rally in the next week/next settlement. As of now nifty may settle for this settlement around 4750.

As seen from the next month option build up (which is giving a clue of nifty movement for the new settlement, perfect indications as per the past 4 settlements), nifty range for the next settlement will be 4700 to 5000 (down side failing which nifty drifts to 4600 only).

For today's trading, as of now try to buy 4900 put or 4700 call at cheaper rate for nifty convergence at 4800. If nifty falls on Friday then one may go for calls in the next month.

NIFTY Technical
Current Spot: 4826.15
Pivot: 4825.75
3DEMA: 4873
7DEMA: 4944
50DEMA: 4881
Supports: 4784 - 4743
Resistance: 4867 - 4909

Target Nifty
Nifty Fut buy above 4846 tgt 4862, 4879, 4897 sl 4809
Nifty Fut sell below 4809 tgt 4786, 4775, 4758 sl 4846

Stock Ideas for the Day
KSK Energy : Buy above 199 for targets of 204, 208 SL of 196
LNT : Buy above 1590 for targets of 1602, 1615 SL of 1582
HDIL : Buy above 348 for targets of 351.50, 353 SL of 346.85
Reliance Industries: Sell below 2010 for targets of 2000, 1981 SL of 2018

Positional Call:
SesaGoa: Buy above 296 for target of 360, SL of 270 (One Month)
Sanguine media (531898): Buy at 3.61 for target of 8, 9, 10 SL of 2.90 (6 months)

Use strict STOP LOSS in each and every trade in this kind of volatile market and Trade at your own risk.

Thanks and Regards

S&P Wealth Creators

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