Market outlook for 30/11/09

As written on Friday the market opened deep in Red and went down to 4806, our support level was 4800, and too U-turn to close above our major support level of 50DEMA support level of 4936. Nifty recovered 135 points intraday to ultimately close at 4941.75 -63.8 points.

• FII sold in index futures, cash and bought small quantities in Index options and stock futures
• US markets closed in Red.
• Global cues are Positive.
• SGX nifty is Positive.

Over all view: From here Nifty is expected to move range bound. Moreover, F&O data is also supporting this view. We saw significant OI (Open Interest) accretion in 4800 put and on the flip side higher OI build up in 5000 Call this week which indicates that Nifty can move within 4750-5050 range in the forthcoming trading sessions. Nifty is likely to face stiff resistance at 5050 levels and on downside the support is at 4750 levels. If it breaks this level, it could further be dragged to 4500.

NIFTY Technical
Current Spot: 4941.75
Pivot: 4900.30
3DEMA: 4996
7DEMA: 5022
20DEMA: 4989
RSI (7 days): 39.68
Supports: 4848 - 4754
Resistance: 4994 - 5046

Target Nifty
Buy Nifty above 4955 - 4970 - 5005 - 5014 - 5028 - 5072 SL - 4925
Sell Nifty below 4900 - 4884 - 4874 - 4850 - 4840 - 4830 SL - 4937

Option & Futures Call
Buy SUZLON DEC 90 CALL at 1.5 and DEC 60 PUT at 1.15 for combined premium target of 3/5/7/9 SL combined premium 1 on closing basis.

Stock Ideas for the Day
Reliance Industries: Buy above 1057 for targets of 1071, 1078, 1083 SL of 1046
Reliance Industries: Sell below 1042 for targets of 1033, 1026, 1020 SL of 1052
Cipla: Buy above 228 for targets of 234, 237 SL of 225
KPIT Cummins: Buy above 117 for targets of 124, 130 SL of 105 (2-3 Days)
India Cement: Buy above 111 for targets of 117, 124 SL of 105 (3-5 Days)
Suzlon: Buy above 74.8 for targets of 76, 82 SL of 71.2 (3-5 Days)

Positional Call
Tinplate: Buy 61.6, Target 74, SL 55 (1 Month)
Indian Hotel: Buy 84, Target 102, SL 75 (1 Month)
Aries Agro Limited (Short term target - 80)

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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