Market outlook for 11/01/10

Last session 5235 worked perfectly as well as the overhead resistance 5285. Nifty is witnessing intra day correction but as discussed on last few posts, holding 5230 will bring higher levels again.
Nifty closed the day at 5,244.75 down by 18.35 points. Nifty January Future closed at 5,258.45, premium of 13.70 points.

• FII sold in index futures, and stock futures but bought in index options and cash (Net sell 706 Crore)
• US markets closed just flat to Positive.
• Global cues are flat to Positive.
• SGX nifty is just flat to Positive as of now.
• Most Active January Nifty Call Option: 5300 and 5400.
• Most Active January Nifty Put Options: 5200 and 5300.

Over all view
Supports: 5250 is pivotal. Below that 5235-30 will be challenged again, violation of which can result in 5200-5195-5140. But as shown above, no positional downtrend is visible, as long we are above 5140.
Resistances: 5290-94, above which 5303 will be challenged and much awaited 5333-40 can show up.

NIFTY Technical
Current Spot: 5244.75
Pivot: 5252
3DEMA: 5254
7DEMA: 5232
20DEMA: 5160
RSI (7 days): 64.64
Supports: 5227 - 5210
Resistance: 5269 - 5394

Target Nifty
Buy Nifty above 5263 - 5272 - 5281 - 5293 SL - 5246
Sell Nifty below 5246 - 5237 - 5228 - 5215 SL - 5263

Option & Futures Call
Buy SUZLON 85 PA (Put Option) Jan @ 1.75 SL 1.00 Closing basis Target 3/5/10.

Stock Ideas for the Day
Reliance is in an uptrend as oil and gas is the buzzword in the coming days. Thus if stock stays above the level of Rs 1100 than it can target the levels of Rs 1,126-Rs 1,164 in the coming days. Thus as a strategy one can be long in the stock with stop loss as Rs 1,049 as thereafter stock can fall to the levels of Rs 1,027- Rs 990.
Stock during its upmove can target the levels of Rs 1,119-Rs 1,200 and one needs to exercise caution in coming week as stock is near its major resistance.

Reliance Industries: Buy above 1104 for targets of 1112, 1121, 1130 SL of 1095
Reliance Industries: Sell below 1094 for targets of 1086, 1076, 1068 SL of 1104
Guj Borosil (523768): Buy above 17.25 for targets of 19, 21 SL of 16 (1-2 Days)
GVKPIL: Buy above 50.6 for targets of 51.1, 52.1 SL of 49.6 (1-2 Days)
EKC: Buy above 155 for targets of 158, 161 SL of 149.6 (1-2 Days)

Positional Call
Reliance Capital: Buy above 905 for targets of 956 SL of 890 (2-3 Weeks)
Prism Cement: Buy above 49.8 for targets of 54 SL of 46 (1 Week)

I like to buy things I can understand. I do a lot of research on things - 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

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