Market outlook for 24/12/09

Nifty's irregular correction was discussed once earlier. Any correction having its "b" wave moving above the "A" starting point hints at the underlying strength. And the same must have unfolded today with many stocks (frontline) making new uptrend highs. Nifty ultimately closed at 5,144.60 up by 158.75 points. Nifty December Future closed at 5,157.50, premium of 12.9 points.

• FII bought in index futures, index options, stock futures and cash (Net Buy 2540 Crore)
• US markets closed just flat to positive.
• Global cues are Positive.
• SGX nifty is flat as of now.
• Most Active December Nifty Call Option: 5100 and 5000.
• Most Active December Nifty Put Options: 5000 and 5100.

Over all view: Tomorrow nifty future should find support at around 5115 levels. If 5115 is held nifty future will move up to 5200 - 5225. 5225 should offer resistance for nifty. If it trades above 5225 with volumes, nifty future may even move to 5290 and 5310. On the downside, nifty future should not break 5072. Breaking and trading below 5072 nifty future will move to 5030, 4990 and 4970.

The EW possibility for the coming days is shown in the above graph;

NIFTY Technical
Current Spot: 5144.60

Pivot: 5100.75

3DEMA: 5065
7DEMA: 5048

20DEMA: 5051

RSI (7 days): 64.67

Supports: 5051 - 4957

Resistance: 5194 - 5244

Target Nifty

Buy Nifty above 5157 - 5168 - 5179 - 5190 - 5202 - 5225 SL - 5115

Sell Nifty below 5115 - 5101 - 5087 - 5072 - 5051 - 5030 SL - 5157

Stock Ideas for the Day
Reliance Industries: Buy above 1066 for targets of 1074, 1080, 1097 SL of 1051
Reliance Industries: Sell below 1050 for targets of 1041, 1028, 1005 SL of 1066
Lupin: Buy above 1455 for targets of 1485, 1510 SL of 1435 (1-2 Days)
Mphasis: Buy above 734 for targets of 748, 762 SL of 712 (1-2 Days)
IDBI: Buy above 130.2 for targets of 133, 136 SL of 127.5 (1-2 Days)

Positional Call
Praj Industries: Buy at 102.5 for targets of 126 SL of 92 (1-2 Weeks)
PowerGrid: Buy at 110 for targets of 135 SL of 97 (1-2 Weeks)

P/E ratio- The percentage of investors wetting their pants as this market keeps crashing - 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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