Market outlook for 14/12/09

Domestic market ended the day below the dotted line on profit booking witnessed in frontlines. Domestic bourses were unable to sustain the opening gains due to a hasty reaction to October IIP data. The lower than expected growth caused sell-off in equities. However, positive European markets contributed a bit to the upturn during the trading. Also, most of the Asian stocks ended higher, which contributed to some recovery in the domestic bourses. Meanwhile, India’s industrial output rose 10.3% in October from a year earlier and was helped by stimulus measures and robust domestic demand. Nifty ended at 5,117.30 down by 17.35 points. It made a high/low of 5,182.55 and 5,088.40 respectively. Nifty December Future closed at 5110.60 discount 6.7 points.

• FII bought in index futures, cash and small quantities in index options and stock futures (Net Buy 821 Crore)
• US markets closed in Positive.
• Global cues are flat to 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: If we look at the weekly data then the low for the week was made on the 8th of dec and the new high on the 11th of dec, so for this week, nifty has to cross 5182 with volumes to move to 5208, 5327 and if breaks 5058 with volumes then get set to see the bears taking over the game.
The top formation can be said to be broken thus a chance of a pull back by the bulls can be expected for the week and this range bound situation would be broken by either sides would decide the winner of the round. Today Nifty may try to scale the summit of 5182. Critical level to watch out for would be 5090 & 5182. Until then it is only trading range.

NIFTY Technical
Current Spot: 5117.3
Pivot: 5129.45
3DEMA: 5121
7DEMA: 5113
20DEMA: 5068
RSI (7 days): 55.28
Supports: 5076 - 5035
Resistance: 5170 - 5224

Target Nifty
Buy Nifty above 5129 - 5148 - 5160 - 5171 - 5183 - 5197 SL - 5100
Sell Nifty below 5080 - 5065 - 5055 - 5035 - 5015 - 5008 SL - 5110

Stock Ideas for the Day

Reliance Industries is showing a state of indecision and same is confirmed by the spinning top candlestick pattern as shown in the charts of the stock. As a long term investor one must exit if stock falls below 899 level and on the higher side one can expect stock rallying to the levels of 1140-1221. Short term investors can exit the share if it breaks the level of 1029 and one can go long in the stock once it trades above the level of 1120.

Reliance Industries: Buy above 1073 for targets of 1079, 1090, 1099 SL of 1067
Reliance Industries: Sell below 1067 for targets of 1061, 1055, 1049 SL of 1074
Vijaya Bank: Buy above 54.7 for targets of 57, 60 SL of 53 (1-2 Days)
MTNL: Buy above 76 for targets of 78, 81.5 SL of 73.9 (1-2 Days)
Gail: Sell below 413 for targets of 410, 406, 400 SL of 417

Positional Call
Bharti Airtel: Buy above 332 for targets of 345, 352 SL of 320 (1 Week)
Dai-Ichi Karkaria Ltd(526821): Buy above 39.7 for targets of 42, 46 (1-2 Weeks)
Diana Tea(530959): Buy above 27.8 for targets of 30, 32 (1-2 Weeks)
Precision Pipes And Profiles Company Limited: (Short term target -
100)

Put not your trust in money, but put your money in trust - Oliver Wendell Holmes

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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