Market outlook for 21/12/09

As written on Friday, the anticipated fall was seen after a range bound trade till the afternoon; a fall of 50 points within 5 minutes and nifty was down to 4980 level. Nifty ultimately closed at 4,987.7 down by 54.05 points. Nifty December Future closed at 4,983.60, discount of 4.1 points.

• FII sold in stock futures, index futures and cash, bought in index options (Net Sell 829 Crore)
• US markets closed just flat to positive.
• Global cues are flat to positive.
• SGX nifty is flat as of now.
• Most Active December Nifty Call Option: 5100 and 5200.
• Most Active December Nifty Put Options: 5000 and 4900.

Over all view: Friday low of nifty of 4972 will act as strong support for nifty. If nifty trades below 4972 with volumes, it could get knocked down to 4930, 4905 and 4885. On the upper side, 5019 will act as trend decider. Trading above 5019 with volumes, nifty will move to 5060, 5090 and 5115.

NIFTY Technical
Current Spot: 4987.7
Pivot: 5003.35
3DEMA: 5019
7DEMA: 5049
20DEMA: 5056
RSI (7 days): 32.25
Supports: 4963 - 4939
Resistance: 5028 - 5068

Target Nifty
Buy Nifty above 5004 - 5013 - 5014 - 5030 - 5050 - 5068 SL - 4980
Sell Nifty below 4979 - 4970 - 4965 - 4955 - 4946 - 4930 SL - 5005

Stock Ideas for the Day
Reliance Industries is the culprit of last week fall and present movement of stock below 1050 is a reason for its downtrend. Thus if the stock can trade above the level of 1011, than it can rise to the 1050-1080 in the near term.
If the share trades below the level of 999 than it can fall to the levels of 988-975.
Stock is likely to be range bound between the levels of 850-1,200 in the medium term. Thus as a strategy one can go long once stock closes near the level of 850 as a long term investment.

Reliance Industries: Buy above 1008 for targets of 1015, 1025, 1044 SL of 995
Reliance Industries: Sell below 995 for targets of 985, 976, 965 SL of 1008
Canara Bank: Buy above 385 for targets of 392, 401 SL of 371 (1-2 Days)
Lanco Infra: Buy above 536 for targets of 541, 549 SL of 525 (1-2 Days)
DCHL: Buy above 157 for targets of 163, 169 SL of 150 (1-2 Days)

Positional Call
Ratnamani Metals & Tubes: Buy at 94 for targets of 109 SL of 85 (One Week)
JK Cement: Buy at 149 for targets of 160 SL of 136 (One Week)
Jenson & Nicholson Ltd: Buy at 6.8 for targets of 9 SL of 6 (One Month)

Wide diversification is only required when investors don't understand what they are doing - Warren Buffet

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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Disclaimer
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