Market outlook for 29/12/09

As written on 24th Dec, Nifty took support at 5117 (our level 5115) and traded sideways for better part of the day. During the second half again nifty just went in overdrive to touch 5217 (our resistance level 5200-5225) and corrected on negative divergence to ultimately close at 5,178.40 up by 33.80 points. Nifty December Future closed at 5,177.00, discount of 1.4 points.

• FII sold in index futures, index options, stock futures but bought in cash (Net Sell 193 Crore)
• US markets closed just flat to positive.
• Global cues are Flat.
• SGX nifty is Flat as of now.
• Most Active December Nifty Call Option: 5200 and 5100.
• Most Active December Nifty Put Options: 5100 and 5200.

Over all view: Last week Nifty has finally tested important resistance level of 5181 level and weekly chart has formed “Long White Candle” bullish candlestick pattern, which suggests up move is likely to continue. Daily RSI and Stochastic are both featuring in bullish zone. Strong support formed at 20 Days SMA which is placed at 5075 level. Although undertone is bullish but still fresh long is advisable only above 5200 and two close above this level Nifty sets target of 5450-5500 in short term.

NIFTY Technical
Current Spot: 5178.40
Pivot: 5168.45
3DEMA: 5122
7DEMA: 5080
20DEMA: 5063
RSI (7 days): 68.11
Supports: 5139 - 5100
Resistance: 5208 - 5237

Target Nifty
Buy Nifty above 5180 - 5188 - 5199 - 5210 - 5222 - 5235 SL - 5149
Sell Nifty below 5149 - 5141 - 5032 - 5022 - 5011 - 5000 SL - 5179

Option & Futures Call
Buy RelCapital 860CA at 10 for targets of 12, 15 SL 7.5

Stock Ideas for the Day

1050 is an important level in case of Reliance and till the time the stock is able to trade above this level one can consider the stock to be in grip of bulls. Thus one can see stock moving to the levels of Rs 1100-1150 in the times to come.
The point to note is that Rs 1150 is a levels where stock will encounter stiff resistance. During medium term stock is likely to consolidate with in a band of Rs 850-1200 levels.

Reliance Industries: Buy above 1076 for targets of 1085, 1092, 1097 SL of 1060
Reliance Industries: Sell below 1060 for targets of 1051, 1046, 1034 SL of 1076

JSW Steel: Buy above 1024 for targets of 1048, 1064 SL of 996 (1-2 Days)
TCS: Buy above 749 for targets of 759, 770 SL of 732 (1-2 Days)
Ashok Leyland: Buy above 49.9 for targets of 50.5, 51.80 SL of 49.2 (1-2 Days)
State Bank of India: Buy above 2221 for targets of 2235, 2251 SL of 2201 (1-2 Days)

Positional Call
Gspl: Buy at 98 for targets of 126 SL of 92 (1-2 Weeks)
Adhunik Metaliks: Buy at 109 for targets of 135 SL of 97 (1-2 Weeks)

Sometimes your best investments are the ones you don’t make -Donald Trump

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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