Market outlook for 05/01/10

Indian market extended gains till end to close higher on the first session of the year 2010 on significant buying led by firm cues from most of the Asian stocks. The benchmark indices touched intraday high during final trading hours backed by the cues from the equity markets across Europe. Higher US index futures also boosted the sentiments. The market surged to the highest level in 20 months during the trading on strong monthly sales data from auto makers and the latest data showing a rise in exports in November 2009. Nifty ultimately closed near the days high at 5,232.20 up by 31.15 points. Nifty January Future closed at 5,243.00, premium of 10.80 points.

• FII bought in index options and cash but sold in stock futures and index futures (Net Buy 563 Crore)
• US markets closed in Positive.
• Global cues are flat to Positive.
• SGX nifty is Positive of now.
• Most Active January Nifty Call Option: 5200 and 5300.
• Most Active January Nifty Put Options: 5100 and 5200.

Over all view: Though there are negative divergences developing in all time frames, the sell signal has not emerged. Market has a way of surprising and these divergences can disappear if the prices persist.
Supports: As shown on the chart 5230-20 is an important zone for support. Below that, as discussed yesterday, 5205-5175 possible.
Resistances: As we are above 5230, positional targets are 5295-5340/45. But from intra day perspective 5250 is important, above that 5285/95 is easily possible with higher targets of 5330-5340/45 in hand too.

Remember, financial markets demand your highest attention and focus. Stay focused at all times. If you find yourselves having nothing to focus on, spend some time with your loved ones and friends. But never allow "anything" to distract your mind off this "Beautiful Business". Give its due respect that it deserves and it will reward you manifold.

NIFTY Technical
Current Spot: 5232.20
Pivot: 5215
3DEMA: 5207
7DEMA: 5165
20DEMA: 5108
RSI (7 days): 72.34
Supports: 5191 - 5149
Resistance: 5256 - 5280

Target Nifty
Buy Nifty above 5235 - 5245 - 5256 - 5280 SL - 5186
Sell Nifty below 5214 - 5204 - 5191 - 5165 SL - 5235

Stock Ideas for the Day
Reliance Industries: Buy above 1076 for targets of 1086, 1093, 1102 SL of 1062
Reliance Industries: Sell below 1062 for targets of 1052, 1044, 1032 SL of 1076
Wipro: Buy above 698 for targets of 707, 712 SL of 690 (1-2 Days)
Hindalco: Buy above 163.5 for targets of 170, 178 SL of 158 (1-2 Days)
Sterlite: Buy above 875 for targets of 888 and 902 SL of 854

Positional Call
Kohinoor Foods: Buy above 60 for targets of 73 SL of 56 (1 Month)
Idea: Buy above 58 for targets of 68 SL of 54 (1 Week)

The only time to buy these is on a day with no "y" in it - Warren Buffett

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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