Market outlook for 07/01/10

The domestic stock markets today closed with marginal gains after facing huge volatility during the trading session. The domestic benchmark indices belled the session with an optimistic note by gaining some grounds on the back of strong Asian markets and expectations of strong results by the corporates in Q3 December 2009. From the sectoral front, Health care, Realty and Oil & Gas indices attracts the investors' confidence as most buying was witnessed from these baskets. The markets opened on a positive note, continuing the upward movement amid cues from global markets. The early hours of trade witnessed broad based buying in oil & gas exploration, power, pharma and banking stocks which led to the initial surge in the major indices. IT stocks tumbled lending a hand to the major indices to fall thereafter. However, the markets shrugged off its early gains soon after the firm start and went digging deeper into the red zone as the profit booking took a sharp lead after past few days of strong rally. Nifty ultimately closed day at 5,281.80 up by 3.90 points. Nifty January Future closed at 5,291.00, premium of 9.20 points.

• US markets closed just Flat.
• Global cues are flat to Positive.
• SGX nifty is just flat to negative as of now.
• Most Active January Nifty Call Option: 5300 and 5400.
• Most Active January Nifty Put Options: 5200 and 5100.

Over all view: A failure to cross 5295 can actually make Nifty to correct intra-day with 5260, 5235. Especially 5230 will be big zone for bulls to keep the upward momentum intact.
Supports: Immediate support is @ 5275 zone. Sustaining below that can show up 5258/60 & 5230 zone for next buying opportunity.
Resistances: 5295 is immediate, sustaining above that will again try for well discussed 5333/40, a profit booking and probable shorting zone.

NIFTY Technical
Current Spot: 5281.80
Pivot: 5284
3DEMA: 5262
7DEMA: 5215
20DEMA: 5139
RSI (7 days): 77.35
Supports: 5258 - 5233
Resistance: 5308 - 5335

Target Nifty
Buy Nifty above 5284 - 5291 - 5298 - 5308 SL - 5258
Sell Nifty below 5258 - 5251 - 5244 - 5233 SL - 5284

Stock Ideas for the Day
Reliance Industries: Buy above 1088 for targets of 1094, 1101, 1108 SL of 1074
Reliance Industries: Sell below 1074 for targets of 1066, 1060, 1049 SL of 1088
Ruchi Soya: Buy above 95 for targets of 97, 99 SL of 93.5 (1-2 Days)
FCS Software: Buy above 14 for targets of 16, 18 SL of 13.4 (2-3 Days)
SBIN: Buy above 2305 for targets of 2318, 2336 SL of 2280

Positional Call
GTL Infra: Buy above 38.75 for targets of 44 SL of 78 (2 Weeks)
Chambal Fertilizers: Buy above 65 for targets of 75 SL of 59 (1 Week)
Rcom: Buy above 182 for targets of 213 SL of 169 (1 Month)

Most people are beaten up by the market instead of beating the market - MARK T. HEBNER

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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Disclaimer
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