Market outlook for 15/01/10

The Indian market closed the session on a firm note triggered by the strong Asian markets The Oil and Gas index gained momentum on reports that PSU oil marketing companies may get cash instead of oil bonds in terms of compensation from he government for selling fuel at below market prices. After a gap up opening, the domestic benchmark indices gained further ground to touch fresh intraday high but unable to sustain at that level and off the day high to pare some of its gains as the investors are waiting for the inflation figures. However, the market gained momentum soon after the announcement of the inflation figure by the government, which was in line with the market expectations. The wholesale price index (WPI) grew 7.31 per cent in December 2009 from a year earlier, sharply higher than previous month's annual rise of 4.78 per cent. From the sectoral front, most buying was seen in Oil & Gas and Consumer Durables indices. Mid Caps and Small Caps stocks also remained on buyers' radar. However, FMCG and Realty stocks remained out of favour during trading.
Nifty closed the day at 5,259.90 up by 25.95 points. Nifty January Future closed at 5,261.90, premium of 2.00 points.

• FII bought in index futures and index options but sold in stock futures and cash. (Net sell 57.8 Crore)
• US markets closed Positive.
• Global cues are flat to 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
Supports: Clearly 5245 and 5225 is the key right now. And s discussed yesterday, a upside hurdle at 5275 zone will be a indication of the corrective move on the upside. Below 5225 it can target again 5180-5170 and 5145-5125 level, to decide it's further course of journey. Till 5125 holds, the target of 5330/38 is intact.
Resistances: 5275 is initial resistance. A good volume BO above that can certainly bring some strength to Nifty. A cross above 5295 will be an early indication for impending targets of 5330/38.

NIFTY Technical
Current Spot: 5259.90
Pivot: 5258.95
3DEMA: 5246
7DEMA: 5238
20DEMA: 5186
RSI (7 days): 64.02
Supports: 5245 - 5230
Resistance: 5274 - 5288

Target Nifty
Sell NIFTY AROUND 5282 FOR TARGETS -5260, 5244 keep SL-5290
Buy NIFTY AROUND 5215 FOR TARGETS -5235, 5260 keep SL-5180

Stock Ideas for the Day
Reliance Industries: Buy above 1124 for targets of 1132, 1140, 1148 SL of 1110
Reliance Industries: Sell below 1110 for targets of 1099, 1094, 1086 SL of 1110
Exide Industries: Buy above 119 for targets of 124, 130 SL of 115 (1-2 Days)
Bharat Seats: Buy above 25.85 for targets of 27, 29 SL of 24 (2-3 Days)
Indian Hotels: Buy above 106.5 for targets of 108, 109.5 SL of 102 (2-3 Days)
Suzlon: Sell below 91 for targets of 90.15, 89.1 SL of 92.05

Positional Call
ABB: Buy above 854 for targets of 912 SL of 836 (1 Month)
Firstsource Solutions: Buy above 37 for targets of 40 SL of 35.5 (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.

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S&P Wealth Creators

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