Market outlook for 09/11/09

6-11-09 trading shows the nifty faced resistance at opening levels and lost some steam before close at nifty 4796 +30.

• FII data: bought in cash, index futures and stocks futures.
• F&O nifty futures shed open interest means profit booking in longs.
• Option writings: more put writing at 4700 & 4600 and more call writing at 4800 & 4900 means the short term range is between 4600 - 4900.
• Nifty has to break the range in this month?
• US markets and Global cues are flat to + ve.
• SGX nifty is flat.

Over all view:
As seen from FII long build up in stocks futures continuously and 26.4 lakhs index futures net buying, it is felt that final journey for this month may be to long side with immediate trading side ways for one or two days. Hence, it is felt that one may try to accumulate the calls of 4900/4800 for this week targeting the settlement closing above 4900.

Some points to be noted:

• Unemployment rate in USA hit 26 year high and more than 120 banks collapsed.
• Still Dow Jones Industrial Average trades at 10000+
• Stock markets are designed to fool every one.
• Foreign analysts predict 20% violent correction in stock prices
• Indian companies have managed to post better profit due to lower excise duty.
• But average growth in sales were very minimum

NIFTY Technical
Current Spot: 4796.15
Pivot: 4780.65
3DEMA: 4761.17
7DEMA: 4770.78
100DEMA: 4603.34
RSI (14 days): 44.94
Supports: 4725 - 4654
Resistance: 4852 - 4907

Target Nifty
Sell NF Below 4780 and 4771 Target 4752, 4697, 4601 SSL - 4819
Buy NF Above 4804 and 4819 Target 4848, 4889, 4907 SSL - 4771
Buy Bank Nifty Above 8740 for Targets of 8790, 88825, 8860 SL – 8700

Stock Ideas for the Day
Mphasis: Buy above 723 for targets of 730, 741 SL of 704
Reliance Industries: Buy above 1964 for targets of 1971, 1988 SL of 1955
Piramal Glass: Buy above 54 for targets of 56, 59 SL of 53.1
Harrisons Malayalam Ltd: Buy above 109.50 for targets of 112, 115 SL of 106.5

Positional Call
NMDC Limited (Short term target - 450)
JM Financial Ltd (Short term target – 52)

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

Call 09831497250 or mail us @ S&P Wealth Creators with your Name and Mobile No. for subscription offer of intraday calls during Market hours.

Disclaimer
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