Thursday, December 10, 2009

Market outlook for 10/12/09

On Wednesday nifty opened flat at 5148, which was also the days high and traded down on the back of weak global cues. Nifty went down to touch a low of 5091 and recovered a bit and ultimately closed just below 5DEMA at 5112 -35.95 points. Nifty December Future closed at 5126.25 a premium of 14.25 points.
  • FII sold in index futures, stock futures and cash but bought small quantity in index options (Net Sold 1236 Crore)
  • US markets closed in Positive.
  • Global cues are Positive.
  • SGX nifty is Positive 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 has closed below 5-DMA but above 5-EMA, correction continues. Critical level to watch out for would be 5090 & 5150. A 100 point trading range of 5062 to 5162 & spending better part above 5110. All the Ema’s have come up and unless Nifty manages to climb higher, the rising averages will press it down. 13-DMA/EMA provided support the last time at 5060 and have climbed to 5080. A close above high Ema only can bring momentum. Until then it is only trading range.

Finally the "Dollar Index", as long as it stays above 75.45 & reverses up, bears will rejoice. After the 3rd wave, this index has gyrated in a range for 2 days which should explain the choppy moves. Once this range of 75.40 to 76.40 is resolved, then we can see some direction to equities.



NIFTY Technical
Current Spot: 5112.00
Pivot: 5116.30
3DEMA: 5115
7DEMA: 5103
20DEMA: 5055
RSI (7 days): 55.65
Supports: 5086 - 5061
Resistance: 5142 - 5172

Target Nifty
Buy Nifty above 5116 - 5128 - 5140 - 5149 - 5158 - 5180 SL - 5101
Sell Nifty below 5085 - 5075 - 5065 - 5072 - 5059 - 5050 SL - 5112

Stock Ideas for the Day
Reliance Industries: Buy above 1072 for targets of 1078, 1086, 1093 SL of 1062
Reliance Industries: Sell below 1062 for targets of 1054, 1046, 1042 SL of 1072
BPCL: Buy above 636 for targets of 651, 665 SL of 616 (2-3 Days)
3i Infotech: Buy above 89 for targets of 92, 96 SL of 82 (2-3 Days)
Wipro: Buy above 660 for targets of 668, 673 SL of 653

Positional Call
Balaji Telefilms: Buy above 58 for targets of 64, 68 SL of 55 (1 Month)
Liberty Shoes Ltd: Buy above 101 for targets of 120, 135 SL of 90 (1 Month)
Goldstone Technologies Ltd (Short term target - 50)

The first rule is not to lose. The second rule is not to forget the first rule - Warren Buffett

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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