Weekly Outlook Indian Stock Market (29 Dec - 1 Jan)

Weekly Technicals
High: 5197.90
Low: 4943.95
Close: 5178.40
Weekly Change: +190.70
5Ema: 5075.6

Range bound movement is expected

Nifty witnessed a spectacular rally this week and succeeded in breaching the higher levels on the back of Finance minister’s comments on expectations of strong GDP growth for FY10 and on the back of positive global cues. Nifty witnessed around 200 points rally in the last two trading sessions due to short covering and created a new 2009 high after consolidating within a range of 4,945-4,995 for the initial two trading sessions. Nifty is expected to be range bound in the coming week. The F&O data is also supporting this statement as maximum OI has been added in the calls ranging from 5,200-5,300 and on the flip side we can see a high OI build up in 5,100-5,000 puts. Also a high volatility cannot be ruled out ahead of the F&O expiry which is due on 31st December. Upside, it has a strong resistance at 5,180-5,200 which can restrict it from rising further. If it breaches this level it can further move to 5,300 levels. Downside, 5,100 is the immediate support and it could further be dragged to 5,060 which is its next strong support if it breaches the 5,100 level. Buying could be seen in Healthcare and FMCG stocks while selling might be witnessed in Oil & Gas and Metal stocks.

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