Market outlook for 18/12/09

Nifty initially took support at 5018 and bounced upto 5047. Supply from the level made nifty drift down again but unable to breach 5000 (low made 5008), bouncd back towards 5073 (high made 5068), but again failed to break the resistance above. From current scenario Nifty is still in range with downside pressure as 5073 is still not broken on the upside. Nifty ultimately closed at 5,041.75 down by 0.3 points. Nifty December Future closed at 5030.00, discount of 11.75 points.

• FII sold in stock futures and index futures bought in cash and index options (Net Sell 166 Crore)
• US markets closed in RED.
• Global cues are Negative.
• SGX nifty is negative as of now.
• Most Active December Nifty Call Option: 5100 and 5200.
• Most Active December Nifty Put Options: 5000 and 4900.

Over all view: We had two days of pause action after a day of dramatic fall. A most likelihood of continuation. A close above 5042 will neutralise it or 5062 should reverse it. A close below "Hour low ema of 5032" will speed up the fall. The level of 5073 will continue to be the resistance.

NIFTY Technical
Current Spot: 5041.75
Pivot: 5039.70
3DEMA: 5050
7DEMA: 5070
20DEMA: 5063
RSI (7 days): 41.51
Supports: 5015 - 4989
Resistance: 5066 - 5091

Target Nifty
Buy Nifty above 5065 - 5073 - 5184 - 5100 - 5110 - 5130 SL - 5041
Sell Nifty below 5030 - 5010 - 4995 - 4985 - 4966 - 4950 SL - 5045

Option & Futures Call
CIPLA: Buy above 357 for targets of 365, 372 SL of 350

Stock Ideas for the Day
Reliance Industries: Buy above 1039 for targets of 1048, 1063, 1072 SL of 1023
Reliance Industries: Sell below 1023 for targets of 1014, 1004, 998 SL of 1039
Dhampur Sugar: Buy above 132 for targets of 136, 144 SL of 126 (1-2 Days)
Shree Renuka Sugar: Buy above 220 for targets of 224, 230 SL of 212 (1-2 Days)
KPIT: Buy above 133 for targets of 136, 140 SL of 130
Godrej Industries: Buy above 178.9 for targets of 181.8, 184.9 SL of 174.8

Positional Call
JSL Ltd: Buy at 110 for targets of 125 SL of 101 (One Week)
Zicom Electronic: Buy at 109 for targets of 124 SL of 100 (One Week)
Austral Coke: Buy at 10 for targets of 13 SL of 9 (One Month)

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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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