Market outlook for 09/12/09

On Tuesday nifty opened flat 5068 and traded sideways for the major period of the first half in the range of 5080-5105 and went down to touch a low of 5058. From there on Nifty started its upward journey and continued to scale new highs and ultimately ended at a new highest close for the year of 5147.95 +81.25 points. Nifty December Future closed at 5159.3 point a premium of 11.35 points.

• FII bought in index options and cash but sold in index futures (Net Buy 1095 Crore)
• US markets closed in negative.
• Global cues are Negative.
• SGX nifty is 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: Nifty is poised to clear the previous intra high of 5182. Holding 5100 only, new highs are possible. Nifty has just entered into the resistance zone of 5150-5160; positive global cues may help it to climb higher. How high this up move will take nifty, the valid targets are 5309-5566 (Complete correction from High of 6336 to 2228). On the lower side if 5030 is broken decisively then we can go down to 5100-5080 levels very quickly. Play along the current trend till warning bells ring in the form of Negative Divergences & Completed Wave forms.

NIFTY Technical
Current Spot: 5147.95
Pivot: 5119.80
3DEMA: 5118
7DEMA: 5100
20DEMA: 5049
RSI (7 days): 62.43
Supports: 5087 - 5026
Resistance: 5181 - 5213

Target Nifty
Buy Nifty above 5150 - 5165 - 5180 - 5192 - 5200 - 5213 SL - 5125
Sell Nifty below 5120 - 5110 - 5100 - 5087 - 5075 - 5056 SL - 5140

Stock Ideas for the Day
Reliance Industries: Buy above 1081 for targets of 1086, 1091, 1097 SL of 1072
Reliance Industries: Sell below 1072 for targets of 1067, 1062, 1044 SL of 1081
BhartiAirtel: Buy above 332.4 for targets of 336.2, 342.6 SL of 328.1
Purva: Buy above 97.4 for targets of 99.4, 101.6 SL of 93.9
NTPC: Buy above 209.9 for targets of 212.4, 215.5 SL of 206
Maruti: Sell below 1566.8 for targets of 1562.4, 1556.3 SL of 1574.1

Positional Call
Ankur Drug: Buy above 220 for targets of 260, 320 SL of 170 (3-6 Months)
Hcl Tech: Buy above 352 for targets of 370, 380 SL of 340 (3-4 Weeks)
Jupiter Bioscience Ltd: Buy above 84 for targets of 92, 95 SL of 81 (7-10 Days)

Our favourite holding period is forever - Warren Buffett

Use strict STOP LOSS in each and every trade in this kind of volatile market and Trade at your own risk.

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S&P Wealth Creators

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