Market outlook for 15/12/09

Yesterday Nifty rallied up in the first session on the back of firm global cues (Dubai Bailout) and fell in the afternoon session after higher then estimated Inflation figure of 4.78%. Nifty ended at 5,105.70 down by 11.60 points. It made a high/low of 5,156.7 and 5,090.15 respectively. Nifty December Future closed at 5102.25 discount 3.45 points.

• FII bought in index futures and cash, sold in index options and stock futures (Net Sell 56 Crore)
• US markets closed was just flat to Positive.
• Global cues are flat to Negative.
• 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: If nifty is unable to move past 5125-5135, it might break below 5080 and head lower (to either 5015 or 4970) as suggested in the hourly chart with its negative divergences. It is possible Nifty might trade sideways in the first session & break down in a big way in the afternoon session. 5145-5157 becomes a critical resistance. Only a daily close above "Day High Ema" will lead to a big break out.
Critical level to watch out for would be 5090 & 5145. Until then it is only trading range.

NIFTY Technical
Current Spot: 5105.7
Pivot: 5117.5
3DEMA: 5113
7DEMA: 5111
20DEMA: 5072
RSI (7 days): 52.73
Supports: 5078 - 5051
Resistance: 5145 - 5184

Target Nifty
Buy Nifty above 5119 - 5128 - 5139 - 5151 - 5163 - 5177 SL - 5099
Sell Nifty below 5081 - 5069 - 5060 - 5045 - 5035 - 5018 SL - 5111

Option & Futures Call
Sell Dec 5200CE at 62 and Dec 4900PE at 47 for a combined premium of 109 (Nifty range 4900-5200 Net profit 5450 till expiry)

Stock Ideas for the Day
Reliance Industries: Buy above 1071 for targets of 1078, 1091, 1100 SL of 1062
Reliance Industries: Sell below 1062 for targets of 1057, 1050, 1037 SL of 1072
Gujarat NRE Coke: Buy above 65.6 for targets of 67.2, 68.9 SL of 63.2 (1-2 Days)
India Cement: Buy above 121 for targets of 123.8, 126.4 SL of 117.6 (1-2 Days)
Tata Tea: Sell below 932 for targets of 924, 914 SL of 946

Positional Call
Savita Oil Technologies Ltd.: Buy above 450 for targets of 600 SL of 401 (1-2 Months)

It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price - 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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