Market outlook for 14/01/10

Indian market closed near day's high after recovering sharply from lower level on expectations of better Q3 December 2009 result by India Inc. The benchmark indices witnessed a sharp rebound on the back of statement given by Indian Finance Minister Pranab Mukherjee that the economy is expected to grow by about 7.75 per cent in the financial year ended March 2010.
However, stocks were volatile and were exhibiting weakness till late afternoon trade tracking subdued Asian stocks. The cues from the Asian markets were unfavorable as the Central Bank of China has unexpectedly raised the proportion of deposits lenders must set aside as reserves by 50 basis points.
Nifty closed the day at 5,233.95 up by 23.55 points. Nifty January Future closed at 5,243.00, premium of 9.05 points.

• FII sold in index futures, stock futures and cash but bought in index options (Net sell 1111 Crore)
• US markets closed Positive.
• Global cues are Positive.
• SGX nifty is Positive as of now.
• Most Active January Nifty Call Option: 5300 and 5200.
• Most Active January Nifty Put Options: 5200 and 5100.

Over all view
We certainly discussed the immediate bearishness along with the positional bullish view on the last post. Nifty exactly did that by starting weak (support at 5169) and then closing at its highest for the day. So nifty has already managed to hold onto one of its big support level and looking for another to head up towards the 5265-85 zone before deciding its further move. The positional view of 5333-5340 is still intact as long as 5140-5120 is holding for the bulls.
Supports: Up move from 5176 is having its immediate support at 5205 zone. Sustaining below that it can again target 5170 and well discussed 5145-25.
Resistances: This up thrust can make nifty move towards 5265-5275 initially and 5285-5295 after that. Long initiated around 5185 can be booked here once and can be reconsidered above 5295 again. Above that 5330-5338 will be targeted.

NIFTY Technical
Current Spot: 5233.95
Pivot: 5214.20
3DEMA: 5232
7DEMA: 5231
20DEMA: 5178
RSI (7 days): 58.35
Supports: 5189 - 5145
Resistance: 5259 - 5384

Target Nifty
Buy Nifty above 5243 - 5252 - 5267 - 5275 SL - 5232
Sell Nifty below 5221 - 5220 - 5209 - 5189 SL - 5232
Buy Bank Nifty above 8977 - 9025 - 9073 - 9122 SL - 8945
Sell Bank Nifty below 8881 - 8841 - 8817 - 8800 SL - 8945

Swing Trade
HDIL looks good for a swing trade.

Yesterday's low will hold the fortunes for HDIL in the coming days. HDIL future can be bought on retracement to 367 with yesterday's low of 354 as stop loss for targets 402 and 420.
If the stop loss is hit, the trade may be reversed to make profits.

Stock Ideas for the Day
Reliance Industries: Buy above 1089 for targets of 1094, 1099, 1106 SL of 1081
Reliance Industries: Sell below 1081 for targets of 1076, 1070, 1066 SL of 1089
Escorts: Buy above 158.85 for targets of 162, 165 SL of 155.6
Indiabulls Real Estate: Buy above 223 for targets of 232, 245 SL of 216 (2-3 Days)
Peninsula Land: Buy above 87 for targets of 91, 95 SL of 84 (2-3 Days)

Positional Call
Sterling Biotech: Buy above 101 for targets of 122 SL of 91 (1 Month)
Sasken Communication: Buy above 196 for targets of 220 SL of 182 (1 Week)

The key to making money in stocks is not to get scared out of them - Peter Lynch

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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