Market outlook for 08/12/09

On Monday nifty opened at 5131, but soon moved below 5117 and the downward move continued for the entire session. Weak European clues also added to the downward drift and Nifty ultimately ended at 5066.70 -42.2 points (Our support was at 5081 & 5068). Nifty December Future closed at 5060 point a discount of 6.7 points.

• FII sold in index futures, stock futures and cash but bought small quantity in index options (Net Sell 1007 Crore)
• US markets closed flat to negative.
• Global cues are flat to Negative.
• SGX nifty is flat to Negative as of now.
• Most Active December Nifty Call Option: 5200 and 5100.
• Most Active December Nifty Put Options: 5100 and 5000.

Over all view: Yesterdays volumes were one of lowest of recent times and the market breadth was also marginally negative. Today the index may face resistance at 5081, 5100 and 5111. Nifty close above 5136 will indicate that the bull trend is still intact, but as evident from yesterdays close, nifty looks set for further correction till 5036, 4996.

NIFTY Technical
Current Spot: 5066.70
Pivot: 5083.15
3DEMA: 5089
7DEMA: 5084
20DEMA: 5039
RSI (7 days): 50.82
Supports: 5035 - 5003
Resistance: 5115 - 5163

Target Nifty
Buy Nifty above 5083 - 5099 - 5114 - 5130 - 5140 - 5162 SL - 5055
Sell Nifty below 5048 - 5035 - 5019 - 5010 - 5003 - 4980 SL - 5075

Stock Ideas for the Day
Reliance Industries: Buy above 1065 for targets of 1072, 1077, 1081 SL of 1052
Reliance Industries: Sell below 1048 for targets of 1041, 1034, 1024 SL of 1056
HindOil: Buy above 283.7 for targets of 287.4, 294.6 SL of 270.4
Adhunik Metaliks: Buy above 103.8 for targets of 105.4, 107.3 SL of 97.9
Mid-day Multimedia: Buy above 24.4 for targets of 25.4, 27.3 SL of 23.6 (2-3 Days)
ABB Ltd.: Buy above 737 for targets of 742.6, 750.5 SL of 729.1

Positional Call
EssarOil: Buy above 143.6 for targets of 151, 154 SL of 139.2 (5-7 Days)

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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