Market outlook for 13/01/10

The Indian market ended today's volatile session with losses on the back of selling pressure emerged in frontline stocks. The benchmark indices witnessed losses after reporting rise in mid trade as better than expected IIP data for November 2009 raised expectations that the central bank will tighten monetary policy to control inflationary pressure. Weak European stocks and lower US index futures also fueled negative sentiment.
Nifty closed the day at 5,210.40 down by 39 points. Nifty January Future closed at 5,208.60, discount of 1.80 points.

• FII sold in index futures, stock futures and cash but bought in index options (Net sell 1055 Crore)
• US markets closed Red.
• Global cues are flat to Negative.
• SGX nifty is just flat to Negative as of now.
• Most Active January Nifty Call Option: 5300 and 5200.
• Most Active January Nifty Put Options: 5200 and 5100.

Over all view
Supports: Market has closed weak below 5245, and eventually targeting 5185 initially as said before. It's an important place for bulls. Violation of which can very well bring us to 5170-5140-5120 zone. 5120 is really big for bulls, and a probable place of resumption of uptrend.
Resistances: 5220-5222 is big hurdle as of now. Above that 5248-5280 can be next hurdle on the upside.
Position view is still up, but intra correction still in place.

NIFTY Technical
Current Spot: 5210.40
Pivot: 5237.25
3DEMA: 5231
7DEMA: 5230
20DEMA: 5173
RSI (7 days): 52.54
Supports: 5174 - 5138
Resistance: 5274 - 5337

Target Nifty
Buy Nifty above 5238 - 5252 - 5267 - 5272 SL - 5228
Sell Nifty below 5197 - 5187 - 5179 - 5170 SL - 5216
Buy Bank Nifty above 9095 - 9139 - 9180 - 9225 SL - 9067
Sell Bank Nifty below 9009 - 8973 - 8951 - 8937 SL - 9067

Stock Ideas for the Day
Reliance Industries: Buy above 1086 for targets of 1091, 1099, 1110 SL of 1076
Reliance Industries: Sell below 1075 for targets of 1070, 1066, 1058 SL of 1086
NIIT Tech: Buy above 186 for targets of 192, 195 SL of 180
JP Associates: Buy above 163.2 for targets of 166, 168 SL of 161
Scooters India: Buy above 39 for targets of 41, 43 SL of 38

Positional Call
Himachal Futuristic: Buy above 12 for targets of 17 SL of 11 (1 Month)

Theories are private property, but truth is common stock - Charles Caleb Colton

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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