Market outlook for 31/12/09

Nifty entering the end of the month, settlement, Year & a long weekend..!!
Yesterday nifty in the first half showed positive move amidst weak Global and Asian cues. But when Europe opened WEAK it changed its direction without any valid reason. It was a mildly choppy day of trade as market closed in the negative with moderate loses. Volumes were on the higher side with F&O expiry today. Nifty broke the crucial support of 5182 and then corrected again. The correction is healthy for the market and the action is now in the midcaps and one will have to be stock specific next month. Nifty ultimately closed at 5,169.45 down by 18.5 points. Nifty December Future closed at 5,169.00, discount of 0.45 points.

• FII bought in index futures and cash but sold in index options and stock futures (Net Sell 165 Crore)
• US markets closed just flat.
• Global cues are Flat to Positive.
• SGX nifty is Positive as of now.
• Most Active December Nifty Call Option: 5200 and 5300.
• Most Active December Nifty Put Options: 5100 and 5200.

Over all view: Expect market to open flat to negative, but during afternoon some recovery is possible as today is F&O expiry. Nifty will face huge resistance at 5190 today. Breaking and trading above that level with volumes, nifty can move to 5220 and 5270. On the other hand, breaking and trading below yesterday’s low of 5161, nifty will move to 5135, 5115, 5095.
Best strategy is to go long in Nifty futures and at the same time buy one Nifty Put in the money, so that you will be protected on both side moves.

NIFTY Technical
Current Spot: 5169.45
Pivot: 5175.60
3DEMA: 5162
7DEMA: 5123
20DEMA: 5084
RSI (7 days): 64.56
Supports: 5154 - 5139 - 5118
Resistance: 5191 - 5212 - 5227

Target Nifty
Buy Nifty above 5176 - 5186 - 5196 - 5206 - 5216 - 5227 SL - 5162
Sell Nifty below 5162 - 5152 - 5142 - 5132 - 5123 - 5118 SL - 5177

Stock Ideas for the Day
Reliance Industries: Buy above 1077 for targets of 1082, 1091, 1098 SL of 1067
Reliance Industries: Sell below 1067 for targets of 1060, 1052, 1044 SL of 1078
Gokul: Buy above 60.2 for targets of 62.5, 65 SL of 57.6 (1-2 Days)
BGR Energy: Buy above 476.1 for targets of 485, 494 SL of 467 (1-2 Days)
Aksh Optifibre: Buy above 21.3 for targets of 21.7, 22.1 SL of 20.9 (1-2 Days)
ICICI Bank: Sell below 880 for targets of 874, 866 SL of 888

Positional Call
Tips Industries: Buy above 51.1 for targets of 53.1, 55.5 SL of 48.2 (1-2 Days)
Cipla: Buy above 345 for targets of 365 SL of 335 (1 Month)
Ashok Leyland: Buy above 48 for targets of 54 SL of 46 (1 Month)

We get paid for bringing value to the market place - Jim Rohn

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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