Market outlook for 01/12/09

In yesterday’s session we saw some panic short covering but no fresh buying was seen in the market, we were low at volumes thus this rally is not sustainable and we have closed below 5055 levels which makes the markets range bound and still in the hands of the bears, a close below 4990 for conservative days would lead to a down fall for the session. On the back of better than expected GDP data Nifty went up to 5071, and ultimately settled at 5032.7 +90.95 points.

• FII bought in index futures, stock futures and cash.
• US markets closed in Positive.
• Global cues are flat to Positive.
• SGX nifty is Positive.

Over all view: From here Nifty is expected to move range bound. Any break with volume on either side of the range of 4950-5050 can take the market higher to 5150-5200 or lower to 4800-4700. Moreover, F&O data is also supporting this view, we saw significant OI (Open Interest) accretion in 4900 put and on the flip side higher OI build up in 5100 Call yesterday. Nifty is likely to face stiff resistance at 5066 levels and on downside the support is at 4900 levels.
Buy on dips and sell at rally is advisable to all traders.....

NIFTY Technical
Current Spot: 5032.70
Pivot: 5033.30
3DEMA: 5014
7DEMA: 5025
20DEMA: 4993
RSI (7 days): 53.03
Supports: 5000 - 4968
Resistance: 5066 - 5099

Target Nifty
Buy Nifty above 5040 - 5050 - 5075 - 5085 - 5111 SL - 5005
Sell Nifty below 4990 - 4961 - 4935 - 4925 - 4890 SL - 5015

Stock Ideas for the Day
Reliance Industries: Buy above 1064 for targets of 1073, 1078, 1088 SL of 1057
Reliance Industries: Sell below 1055 for targets of 1048, 1040, 1031 SL of 1062
CESC: Buy above 390 for targets of 395, 398, 410 SL of 380
BhartiAirtel: Buy above 300 for targets of 310, 320, 330 SL of 290 (2-5 Days)
JPAssociates: Buy above 230 for targets of 235, 238, 245 SL of 218 (1-2 Days)
Tisco: Buy above 579 for targets of 585, 592, 600 SL of 218 (1-2 Days)
Reliance Media Works: Buy above 269 for targets of 272, 277, 287 SL of 259 (1-2 Days)

Positional Call
EuroCeramic: Buy 40, Target 60, SL 31 (15-20 Days)
Kalyani Steel: Buy 181, Target 158, SL 230 (1 Month)

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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