Market outlook for 29/12/09

As written yesterday that though the undertone is bullish, but fresh longs are not advisable, Nifty sea-sawed within a very narrow but positive range. Nifty went up to 5214 but was unable to sustain at higher level and ultimately closed at 5,187.95 up by 9.55 points. Nifty December Future closed at 5,195.00, premium of 7.05 points.

• FII bought in index futures and index options, but sold in stock futures and cash (Net Buy 641 Crore)
• US markets closed just flat to Negative.
• Global cues are Flat to Negative.
• SGX nifty is Negative as of now.
• Most Active December Nifty Call Option: 5200 and 5300.
• Most Active December Nifty Put Options: 5100 and 5200.

Over all view: Uptrend is live and kicking and every previous top and bottom is acting as demand zone. For coming session 5172 will be crucial from intra day perspective. Below that 5145 will be the place to get into the buy side. But below that 5115 can come in no time and further break down can confirm short term reversal.
As discussed earlier, resistance remains at 5230. Though sustaining above 5215 can bring momentum to break that level, but will be comfortable taking long above 5235 zone. Above that 5295-5335/40 is very likely the next targets on the upside.
It can pause a bit before a speedy move. Shorting on the upside and covering it in a dip while going long can be an ideal strategy.

NIFTY Technical
Current Spot: 5187.95
Pivot: 5193.07
3DEMA: 5155
7DEMA: 5107
20DEMA: 5075
RSI (7 days): 69.1
Supports: 5172 - 5156
Resistance: 5209 - 5230

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

Stock Ideas for the Day
Reliance Industries: Buy above 1081 for targets of 1088, 1098, 1107 SL of 1069
Reliance Industries: Sell below 1069 for targets of 1060, 1050, 1034 SL of 1081
3i Infotech: Buy above 88 for targets of 92, 96 SL of 82 (1-2 Days)
HCL Technologies: Buy above 373 for targets of 380, 390 SL of 355 (1-2 Days)
KS Oils: Buy above 64.1 for targets of 64.8, 65.3 SL of 63.6 (1-2 Days)
Wockhardt Ltd.: Buy above 174.1 for targets of 177, 184 SL of 168.2 (1-2 Days)

Positional Call
Sintex India: Buy at 269 for targets of 382 SL of 235 (1 Month)
Noida Toll: Buy at 38 for targets of 54 SL of 36 (1 Month)
Balaji Amines: Buy at 158 for targets of 172 SL of 143 (1-2 Weeks)

Emotions are your worst enemy in the stock market - Don Hays

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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