Market outlook for 05/11/09

Yesterday’s trading erased all previous day's fall and nifty closed at 4711 + 149 points.

• FII data bought in cash, stocks futures (3 rd day longs) and index futures (cleared previous day's shorts).
• F&O nifty futures sheds 23.4 lakhs (cleared previous day's shorts).
• Options writing shows that calls shed open interest and 4600 puts added hugely.
• US markets traded in green but closed flat.
• Global markets are in red.
• SGX nifty green overnight but red now.
• Most of the stocks futures sheds shorts.
• Market is still below 5 day EMA.
• Technical indicators are just turned up from over sold zone.

Overall view: As expected, while reversing the market most of the shorts in index and stocks futures shed and nifty gained the previous day's loss completely. Unless we see the reversal again markets will rise further before resuming the fall.
Nifty targets are 4750-4860-4930. Supports are previous day's low.

For believing the rise today's trading is to be observed for any support build up of open interest in index and stocks futures. Otherwise the fall will continues....

NIFTY Technical
Current Spot: 4710.80
Pivot: 4670.05
3DEMA: 4687
7DEMA: 4761
100DEMA: 4805
RSI (14 days): 38.16
Supports: 4622 - 4534
Resistance: 4759 - 4806

Target Nifty
Sell NF Below @ 4684 and 4663 Target 4620-4520 SSL - 4736
Buy NF Above @ 4720 and 4736 Target 4767-4812 SSL - 4663

Stock Ideas for the Day
Asian Paints: Buy above 1696 for targets of 1712, 1723 SL of 1679
Welspun Gujrat: Buy above 258 for targets of 263, 267 SL of 254
Sun Pharma: Sell below 1369 for targets of 1359, 1347 SL of 1381
Bhushan Steel: Buy above 1178 for targets of 1190, 1203 SL of 1165
Reliance Industries: Buy above 1935 for targets of 1952, 1967 SL of 1918

Positional Call
Ginni Filaments Ltd (Short term target 10)
Cinemax India Ltd. (Short term target 65)

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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Disclaimer
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