Market outlook for 23/12/09

Just as we had written on Tuesday, nifty traded above 4972 for most of the day and once it broke the level with volume, it went up to 4997 (our resistance level 5000 & 5030). Nifty ultimately closed at 4,985.85 up by 33.25 points. Nifty December Future closed at 4,996.00, premium of 10.15 points.

• FII bought in index futures, index options, stock futures and cash (Net Buy 1708 Crore)
• US markets closed positive.
• Global cues are Flat to Negative.
• SGX nifty is Negative as of now.
• Most Active December Nifty Call Option: 5000 and 5100.
• Most Active December Nifty Put Options: 5000 and 4900.

Over all view: Today 5035 on the upside and 4975 on the down side will be trend deciders, once the benchmark closes above 5036 we will see further recovery till 5070 and 5090. The index will test the levels of 4930 and 4900 if it trades/closes below 4976. Tuesday's recovery may have brought some cheer but it may be premature to get bullish which one can only presumed after the benchmark closes above 5090 with volume. Till such time caution must be traders best friend.

NIFTY Technical
Current Spot: 4985.85
Pivot: 4984.20
3DEMA: 4986
7DEMA: 5015
20DEMA: 5041
RSI (7 days): 37.56
Supports: 4971 - 4956
Resistance: 4999 - 5012

Target Nifty
Buy Nifty above 4985 - 4991 - 5004 - 5013 - 5022 - 5048 SL - 4960
Sell Nifty below 4960 - 4947 - 4934 - 4925 - 4916 - 4900 SL - 4995

Stock Ideas for the Day
Reliance Industries: Buy above 1019 for targets of 1026, 1036, 1044 SL of 1009
Reliance Industries: Sell below 1009 for targets of 1001, 991, 980 SL of 1019
Sterlite Industries: Buy above 806 for targets of 826, 858 SL of 790 (1-2 Days)
Bhushan Steel: Buy above 1334 for targets of 1352, 1380 SL of 1270 (1-2 Days)
Aarti Drugs: Buy above 106.1 for targets of 108.5, 112 SL of 104.3

Positional Call
Clutch Auto: Buy at 49.4 for targets of 58 SL of 45 (1-2 Weeks)
3i Infotech: Buy at 88.25 for targets of 99 SL of 82 (1-2 Weeks)
Salzer Electronics: Buy at 110 for targets of 150 SL of 70 (6 Months)

Market Correction: The day after you buy stocks - Anon

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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