Market outlook for 16/12/09

Yesterday the key benchmark indices slumped, reversing an initial rally, as the dollar index, which tracks the greenback against a trade-weighted basket of six major counterparts, climbed roughly half a percent to a six-week high of 76.741 (Written about it here on 06/12/09). Intraday volatility was high. The market pared gains after an early surge triggered by higher advance tax numbers by some Indian firms for the third installment. The market regained strength in morning trade. But the intraday rebound was short-lived. The market once again pared gains in mid-morning trade. The market slipped into the red and ended at 5,033.05 down by 72.65 points. It made a high/low of 5,129.45 and 5,018.25 respectively. Nifty December Future closed at 5021 discount 12.05 points.

• FII sold in cash, index futures, stock futures and index options (Net Sell 1087 Crore)
• US markets closed in Negative.
• Global cues are flat to 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: "5017" has given a mild support yesterday and 5120-5130 was a good resistance at the open. I expect a broad sideways move of 4980-5000 to 5050-5070 and the range may vary a bit depending on world markets. If this is a correction, it should stop in a day or two. Weekly close (still 3 days away) will be a decider.

NIFTY Technical
Current Spot: 5033.05
Pivot: 5060.25
3DEMA: 5073
7DEMA: 5091
20DEMA: 5066
RSI (7 days): 39.44
Supports: 4991 - 4949
Resistance: 5102 - 5171

Target Nifty
Buy Nifty above 5060 - 5077 - 5194 - 5110 - 5130 - 5150 SL - 5019
Sell Nifty below 5005 - 4990 - 4975 - 4960 - 4945 - 4925 SL - 5033

Stock Ideas for the Day
Reliance Industries: Buy above 1057 for targets of 1066, 1083, 1092 SL of 1041
Reliance Industries: Sell below 1040 for targets of 1031, 1014, 1000 SL of 1056
Patni: Buy above 467 for targets of 473, 477 SL of 463 (1-2 Days)
JP Associates: Buy above 222 for targets of 225, 227 SL of 219

Positional Call
Modern Dairies: Buy at CMP for targets of 100 SL of 51 (5-6 Months)
Cyber Media Limited: Buy at CMP for target of 70 (2-3 Months)

Bulls make money. Bears make money. Pigs get slaughtered - Anonymous

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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