Market outlook for 22/12/09

Just as we had written on Monday, nifty traded around 4972 for most of the day and once it broke the level with volume, it fell straight to 4937 (our support level 4930). Nifty ultimately closed at 4,952.6 down by 35.10 points. Nifty December Future closed at 4,940.00, discount of 12.6 points.

• FII sold in index futures and cash, bought in index options and stock futures (Net Sell 344 Crore)
• US markets closed positive.
• Global cues are Positive.
• SGX nifty is Positive as of now.
• Most Active December Nifty Call Option: 5000 and 5100.
• Most Active December Nifty Put Options: 5000 and 4900.

Over all view: Nifty is a stone-throw away from Fibonacci confluence level of 4917. This will provide support for nifty future tomorrow. 4970 will act as zone of resistance. Crossing 4970 with volumes nifty future can retest 5000 and 5035 again. Breaking and trading below 4917, nifty future may be whacked down to 4895 and 4870.

NIFTY Technical
Current Spot: 4952.6
Pivot: 4964.80
3DEMA: 4986
7DEMA: 5025
20DEMA: 5046
RSI (7 days): 27.59
Supports: 4932 - 4911
Resistance: 4986 - 5019

Target Nifty
Buy Nifty above 4965 - 4974 - 4985 - 5005 - 5030 - 5050 SL - 4940
Sell Nifty below 4940 - 4930 – 4915 - 4900 – 4890 - 4880 SL - 4965

Stock Ideas for the Day
Reliance Industries: Buy above 1018 for targets of 1034, 1052, 1074 SL of 993
Reliance Industries: Sell below 993 for targets of 981, 971, 952 SL of 1017
Wipro: Buy above 679 for targets of 692, 705 SL of 655 (1-2 Days)
Todays Writing: Buy above 26 for targets of 26.5, 28 SL of 25.2 (1-2 Days)
GMR Infra: Buy above 66.2 for targets of 66.8, 68.4 SL of 65.1 (1-2 Days)

Positional Call
Indiabulls Power: Buy at 33.3 for targets of 37 SL of 30 (1-2 Weeks)
Varun Shipping Co. Ltd.: Buy at 55 for targets of 67 SL of 50 (One Week)
Mangalam Drugs And Organics Ltd.: Buy at 14 for targets of 20 SL of 12 (One Month)

Investors have very short memories - Roman Abramovich

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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S&P Wealth Creators

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