Market outlook for 19/01/10

Markets extended its afternoon gains, towards closing though ended the off the day's high on account of profit booking during final trading hours. Meanwhile, market recovered from the initial slide during early mid trade on renewed demand emerged in selected counters. Higher US index futures also contributed to the positive sentiments. However, Asian markets were mostly lower today following a loss reported by JP Morgan Chase & Co. in retail banking as well as US consumer confidence trailed forecasts and commodity prices sank.
Nifty closed the day at 5,274.85 up by 22.65 points. Nifty January Future closed at 5,269.70, discount of 5.15 points.

• FII bought in index options and cash but sold in index futures and stock futures. (Net buy 165.7 Crore)
• US markets was closed.
• 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 5300.

Over all view
Nifty came down and bounced from just above the discussed support of 5225 (low made 5232) and trade at least half of the day above 5275 while making a high of 5292. We are poised slightly biased on the upside for the session to come.
Supports: 5252 is immediate, below that once again yesterday's low may be challenged, and a convincing breakdown below 5225, can certainly bring some weakness in it for 5170-5145/25.
Resistance: 5285 as shown on the chart, above that 5315 can be targeted with further targets 5330/40 in hands.
Accumulating put/call writing near 5330 zone from positional perspective can be a better idea.

NIFTY Technical
Current Spot: 5274.85
Pivot: 5258.15
3DEMA: 5262
7DEMA: 5250
20DEMA: 5200
RSI (7 days): 66.33
Supports: 5236 - 5221
Resistance: 5274 - 5296

Target Nifty
Buy Nifty above 5284 - 5295 - 5301 - 5310 SL - 5267
Sell Nifty below 5259 - 5246 - 5233 - 5220 SL - 5284
Buy Bank Nifty above 9106 - 9154 - 9184 - 9206 SL - 9028
Sell Bank Nifty below 8989 - 8930 - 8872 - 8810 SL - 9028

Stock Ideas for the Day
Reliance Industries: Buy above 1102 for targets of 1112, 1126, 1137 SL of 1087
Reliance Industries: Sell below 1087 for targets of 1077, 1064, 1056 SL of 1102
Prism Cement: Buy above 51 for targets of 54, 56 SL of 48 (1-2 Days)
MTNL: Buy above 91 for targets of 94, 96 SL of 89 (2-3 Days)
Tata Chem: Buy above 315.25 for targets of 319, 326 SL of 311 (2-3 Days)

Positional Call
Transformers & Rectifiers: Buy above 436 for targets of 498 SL of 421 (1 Month)
Alok Industries: Buy above 24.6 for targets of 28 SL of 22.9 (1 Week)

Money is like manure. You have to spread it around or it smells - J. Paul Getty

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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