Market outlook for 20/01/10

After the yesterday's gains, the domestic market today plunged sharply to close in red terrain on intense profit booking. Depressing cues from the European markets weighed on the sentiments. Concern ahead of a flurry of US corporate earnings over the next few days also contributed to the downward journey. Benchmark indices exhibited volatility and moved between positive and negative zone earlier during the trading session. However, stocks recovered a bit during mid trade along with rise in US index futures. Meanwhile, Barclays Capital said that the inflation is likely to rise to at least 9 per cent by March, prompting the central bank to raise the cash reserve ratio by 50 basis points.
Nifty closed the day at 5,225.65 down by 49.20 points. Nifty January Future closed at 5,224.15, discount of 1.5 points.

• FII sold in index futures, stock futures and cash but bought in index options. (Net sell 634.5 Crore)
• US markets was 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 5300.

Over all view
Support: Clearly 5212/05 is biggest support now. Holding that nifty again can move up. Below that positional target of 5180/60-5140-5115/10 will be in play.
Resistance: Sustaining above 5230/34 is important. Above that 5260 and 5275 can be targeted again. Violation of 5295 would see newer highs as targets are 5310-5333/40.

NIFTY Technical
Current Spot: 5225.65
Pivot: 5244.00
3DEMA: 5244
7DEMA: 5244
20DEMA: 5203
RSI (7 days): 49.54
Supports: 5200 - 5175
Resistance: 5269 - 5313

Target Nifty
Buy Nifty above 5252 - 5270 - 5288 - 5306 SL - 5240
Sell Nifty below 5216 - 5201 - 5192 - 5185 SL - 5240
Buy Bank Nifty above 9197 - 9242 - 9269 - 9289 SL - 9125
Sell Bank Nifty below 9089 - 9035 - 8981 - 8924 SL - 9125

Stock Ideas for the Day
Reliance Industries: Buy above 1091 for targets of 1098, 1107, 1114 SL of 1081
Reliance Industries: Sell below 1081 for targets of 1076, 1067, 1056 SL of 1091
ABB: Buy above 840 for targets of 854, 866 SL of 830 (1-2 Days)
Chennai Petro: Buy above 249 for targets of 254, 263 SL of 238 (2-3 Days)
Andhra Bank: Buy above 113.25 for targets of 115, 118 SL of 109
Keep Watch - Maruti, Tata Steel & GSPL

Positional Call
Indraprastha Med: Buy above 50.90 for targets of 63 SL of 47 (1 Month)
MIC Electronis: Buy above 50.25 for targets of 58 SL of 48 (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.

Thanks and Regards

S&P Wealth Creators

Call 09831497250 or mail us @ S&P Wealth Creators with your Name and Mobile No. for subscription offer of intraday calls during Market hours.

Disclaimer
The calls given here are My Personal views, trading or investing in stocks is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. S&P Wealth Creators will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information.
Investors should be cautious about any and all stock recommendations and should consider the source of any advice on stock selection. Various factors, including personal or corporate ownership, may influence or factor into an expert’s stock analysis or opinion.