Market outlook for 12/01/10

Domestic market pared almost all initial gains to close the day on flat note on sustained selling pressure exhibited during final trading hours. Market turned southward on profit booking in frontline stocks. Stocks lost momentum despite higher European markets along with firm US index futures.
Nifty closed the day at 5,249.40 up by 4.65 points. Nifty January Future closed at 5,257.00, premium of 7.60 points.

• 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
Today can be a big day for Nifty because of two reasons:

• Infosys earnings
• IIP data

Nifty has been extremely quiet in 2010. And one can hope that things will change after release of tomorrow’s data point.
Support: Not much change in the market mood as everyone is waiting for a valid Breakout. 5250 still holds the key below which 5230-5200-5195 is possible again. A break below those levels can bring all important 5140.
Resistances: 5264-66 is immediate, above that nifty can again target 5295 and probably break this time. 5333-40 still holds good as discussed before.

NIFTY Technical
Current Spot: 5249.40
Pivot: 5259.15
3DEMA: 5252
7DEMA: 5236
20DEMA: 5169
RSI (7 days): 65.53
Supports: 5231 - 5213
Resistance: 5277 - 5305

Target Nifty
Buy Nifty above 5258 - 5272 - 5287 - 5306 SL - 5240
Sell Nifty below 5229 - 5217 - 5209 - 5200 SL - 5248

Buy Bank Nifty above 9176 - 9199 - 9222 - 9253 SL - 9160
Sell Bank Nifty below 9129 - 9110 - 9098 - 9083 SL - 9160

Option & Futures Call
Buy SUZLON 85 PA (Put Option) Jan @ 1.2 SL 1.00 Closing basis Target 2, 4, 7

Stock Ideas for the Day
Reliance Industries: Buy above 1093 for targets of 1101, 1111, 1123 SL of 1081
Reliance Industries: Sell below 1081 for targets of 1076, 1066, 1058 SL of 1094
Edserv: Buy above 268 for targets of 273, 275 SL of 265
Piramal Healthcare: Buy above 382 for targets of 399, 412 SL of 370 (2-3 Days)
Jet Airways: Sell below 526 for targets of 520, 516 SL of 531

Positional Call
Appolo Tyres: Buy above 52.4 for targets of 63 SL of 48 (1 Month)
Jayshree Tea Industries: Buy above 385 for targets of 423 SL of 368 (1 Week)
If a business does well, the stock eventually follows - 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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Disclaimer
The calls given here are My Personal views, trading or investing in stocks is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. S&P Wealth Creators will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information.
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