Market outlook for 04/01/10

Nifty on the last day of the year closed on a cheerful note gaining 0.60% with improved volumes and positive breadth. Market opened above the crucial resistance level of 5182 and moved up very gently to cross above our targets of 5202 and 5215, to touch 5221. Nifty ultimately closed at 5,201.05 up by 31.60 points. Nifty December Future closed at 5,219.50, premium of 18.45 points.

• FII sold in index futures, index options and stock futures but bought in Cash (Net Sell 99 Crore)
• US markets closed in Red.
• Global cues are flat to Positive.
• SGX nifty is flat to Positive of now.
• Most Active January Nifty Call Option: 5200 and 5300.
• Most Active January Nifty Put Options: 5000 and 5100.

Over all view: From a bit longer term perspective Nifty still looks bullish from any angle, but very shorter term looks little stretched.
Supports: 5190 is immediate, below that 5170 is possible for the day. A convincing break below 5165 can bring 5140-5120 for the day. Shorts are only advisable below 5165 zone.
Resistances: 5230 is indeed crucial above that 5295-5340-5440 is possible from positional perspective. Going long in handsome dips or above 5240 would be wiser than jumping in.

NIFTY Technical
Current Spot: 5201.05
Pivot: 5197.23
3DEMA: 5182
7DEMA: 5142
20DEMA: 5095
RSI (7 days): 68.66
Supports: 5173 - 5144 - 5119
Resistance: 5126 - 5250 - 5279

Target Nifty
Buy Nifty above 5215 - 5230 - 5246 - 5263 SL - 5186
Sell Nifty below 5186 - 5171 - 5155 - 5138 SL - 5215

Stock Ideas for the Day
Reliance Industries: Buy above 1090 for targets of 1096, 1103, 1111 SL of 1082
Reliance Industries: Sell below 1082 for targets of 1076, 1070, 1066 SL of 1090
Cairn: Buy above 282 for targets of 288, 294 SL of 274 (1-2 Days)
Bajaj Hindustan: Buy above 225 for targets of 232, 240 SL of 215 (1-2 Days)
IFCI: BUY above 54 for targets of 55.50 and 56.85. SL of 53.10

Positional Call
Purvankra Projects: Buy above 92.5 for targets of 112 SL of 84 (1 Month)
GVK Power: Buy above 46.5 for targets of 54 SL of 43 (1 Week)
Renaissance Jewellery Ltd: Buy at CMP for targets of 90 (1 Month)

I never try to predict the market - Warren Buffett

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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