Market outlook for 18/10/09

Nifty tested the crucial 5,300 resistance level once again this week but was lacking the momentum to move past this level and hence failed to breach it. It consolidated between 5,300-5,180 range throughout this week.
Nifty closed the day at 5,252.20 down by 7.70 points. Nifty January Future closed at 5,261.90, premium of 2.00 points.

• FII sold in index futures, stock futures and cash but bought in index options (Net sell 220 Crore)
• US markets closed in Deep 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
Looks like nifty is forming descending triangle, any breakdown below 5172 with volumes could take nifty to 5050 and any move past 5295 would invalidate the pattern.
Support: The lackluster movements of nifty is yet to witness any Break out. Important support still lies at 5245 given last day (low made 5245) and at 5225. Holding these two levels nifty can regain momentum. Below that 5190-5170 and main support 5145-5120 are possible.
Resistances: 5275 still intact. A volume BO above that can bring 5330/40 where it will be tested again.

NIFTY Technical
Current Spot: 5252.75
Pivot: 5258.15
3DEMA: 5249
7DEMA: 5242
20DEMA: 5193
RSI (7 days): 61.13
Supports: 5236 - 5221
Resistance: 5274 - 5396

Target Nifty
Buy Nifty around 5223 - 5242 - 5251 - 5273 SL - 5215
Sell Nifty around 5272 - 5262 - 5250 - 5234 SL - 5290

Swing Trade Call
Stock : Vakrangee Softwares Ltd.

CMP : 76.05
NSE Code : VAKRANG
52wk H/L : 81.90 – 19.00
Targets : 95 – 100
Time Frame : 1 Month
Stop Loss : 68

Stock Ideas for the Day
Reliance Industries: Buy above 1118 for targets of 1124, 1131, 1140 SL of 1110
Reliance Industries: Sell below 1109 for targets of 1101, 1096, 1088 SL of 1118
Hitachi Home: Buy above 164 for targets of 169, 175 SL of 155 (1-2 Days)
Whirlpool: Buy above 150 for targets of 155, 161 SL of 145 (1-2 Days)
MRPL: Buy above 85.75 for targets of 87, 90 SL of 81 (1-2 Days)
Hindalco: Sell below 165.75 for targets of 163, 160 SL of 171.1

Positional Call
Andhra Bank: Buy above 108 for targets of 127 SL of 100 (2-3 Weeks)
Surya Chakra Power Corp: Buy above 21.5 for targets of 25 SL of 20 (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.

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S&P Wealth Creators

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Disclaimer
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