Market outlook for 27/01/10

Indian markets extended their previous week's losses and closed on negative note following weak cues from the global market. Market slipped during final trading hours backed by huge selling pressure emerged across the board. Further the investors remained nervous ahead of the RBI's quarterly monetary policy review on Friday and derivate expiry of the January series. Negative closing of Asian stocks and the lower trading in European markets took huge beating in domestic bourses. However, higher US index futures were unable to bring any respite.
Nifty closed the day at 5,007.90 down by 28.10 points. Nifty January Future closed at 4992.55, discount of 15.35 points.

• FII sold in index options and cash but bought small in index futures and stock futures. (Net sell 987.7 Crore)
• US markets closed flat to Negative.
• Global cues are flat to Negative.
• SGX nifty is Negative as of now.
• Most Active January Nifty Call Option: 5000 and 5100.
• Most Active January Nifty Put Options: 5000 and 4900.

Over all view
Supports: All the supports are in tact as neither 4975 or 5080 was taken out on Monday. A break below 4975 can certainly make Nifty weak for the day and a immediate target will be 4940. Further breakdown can cause more damage, as it can lead Nifty to 4860-4810/15-4730.

Resistances: Immediate strength for intra day can come above 5045 zone. Above that 5080 is possible. Further break of 5080 on the higher side can bring 5090-5140-5180.

NIFTY Technical
Current Spot: 5007.90
Pivot: 5008.85
3DEMA: 5054
7DEMA: 5122
20DEMA: 5162
RSI (7 days): 18.62
Supports: 4982 - 4956
Resistance: 5035 - 5061

Target Nifty
Buy Nifty above 5003 - 5015 - 5027 - 5039 SL - 4980
Sell Nifty below 4980 - 4956 - 4944 - 4933 SL - 5003

Option & Futures Call
Cipla: Buy 320 PA (Put Option) January Expiry at 1.20, SL 0, Target 3,4,6

Stock Ideas for the Day
Reliance Industries: Buy above 1044 for targets of 1051, 1060, 1069 SL of 1034
Reliance Industries: Sell below 1034 for targets of 1026, 1016, 1009 SL of 1044
Visa Steel: Buy above 43.75 for targets of 45, 47 SL of 42.2 (1-2 Days)
Uttam Galva Steel: Buy above 119 for targets of 121, 124 SL of 116 (2-3 Days)
BPCL: Buy above 570 for targets of 576, 584 SL of 562 (2-3 Days)

Positional Call
Banswara Syntex: Buy above 110 for targets of 132 SL of 105 (1 Month)
Sterlite: Buy above 803 for targets of 871 SL of 762 (1 Week)

Market Timing is a wicked idea. Don’t try it ever - Ellis, Charles D

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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