Market outlook for 26/08/09

25-8-2009 trading shows that as expected the markets took a dip but rises well to close nifty at 4659 +16 points. FII data, F&O data, option writings shows that markets will be bullish further. US and Global markets are Mixed as Shanghai is in red again. SGX nifty is in +ve as of now.

Over all view: We are nearing the peak level of 4720 and markets are facing resistance once again (divergence in one hour charts and continuation of fall in Shanghai). But as per option writings markets should close above 4600 and below 4700 for this month. Option buildup in next month series shows that the range is between nifty 4500-5000 (both will be reached). The flow of IPOs shows that markets will rise further.

Hence, the trading on Friday is most important for the trend setting. It is better to have hedging for these three days for the longs/shorts. Dow may correct for further two days.

Yesterday, I had written if not crosses 4668 & trades below 4648 will take to 4586-4566 level.(Crashed Intraday upto 4581 & taken U-turn to kiss 4682 to close at 4660 )

Now, What to expect from this level ?

Above 4655 …No worry at all.Will kiss 4730-4754.

Today will face Hurdle at 4695.50 crossover will take to 4712-4717-4730 level.

-Suppose not crosses Yesterday’s high of 4682 & trades below 4661 with volumes will take to 4597-4576

My personal strategy for Subscribers :Don’t jump and Buy NF or Sensex stocks…Maximum rally upto 4730-4754.(So best strategy sell 4700 -4800 call and Buy 4200-4300-4400 put )

-Will see unexpected price level in Mid Sept -Oct -November (Just have Patience )

Maximum Traders missed golden opportunity to Nifty Future with stop of 4335..see it kissed 4340 & spurted to 4682 in 5 sessions.

My personal Quotes on Day Trading:

• Persistence and dedication to a daily routine is key.
• Never feel confident even when winning. Humility is a good thing.
• Hope is a four-letter word and has no place in a trading strategy.
• More patience leads to better results.
• Going in each day with eyes wide open is more constructive, more successful, and less stressful than jumping in with a wing and prayer.

NIFTY Technicals:

Current Spot: 4659.35

Pivot: 4638.25

Supports: 4603 & 4548

Resistance: 4694 & 4728

BUY NIFTY ABV 4633 TGT 4692,4722,4745

SELL NIFTY BLW 4611 TGT 4590,4565,4532

SELL NIFTY NEAR 4710 TO 15 SL 4735 TGT 4674,4648,4631

Stock Idea for the Day

BUY RELIANCE NEAR 2030 TGT 2042,2055,2070

SELL RELIANCE BLW 2011 TGT 1995,1982,1974

BUY REL INFRA 1128 SL 1118 TGT 1140,1153

SELL REL INFRA BLW 1118 SL 1128 TGT 1105,1096,1080

OR

BUY REL INFRA ABV 1153 SL 1145 TGT 1165,74,82

BUY IBR REAL ABV 275 SL 270 TGT 280,284,288

SELL IBR REAL BLW 270 SL 275 TGT 265,262,256

SELL SBI NEAR 1765 TO 1770 SL 1774 TGT 1755 ,48,38

BUY SBI ABV 1773 SL 1764 TGT 1782,90,98

BUY SANGHVI MOVERS>164.1,166.9,169.5 SL 159.3

BUY ABB>732.1,737.9,743 SL 725

BUY CESC>364.1,366,369.8 SL 359.5

BUY GRASIM>2671.1,2679,2685,2699 SL 2659

BUY CAIRN>260.1,263,266.8 SL 254.8

BUY FORTIS HEALTHCARE>117.1,119.8,122 SL 114 (ONE CAN HOLD THIS STOCK AS DELIVERY)

BUY APTECH>256.1,259.5,262.4 SL 249.8

RNRL : BUY ABOVE 82 FOR TARGETS OF 82.85 AND 83.90. SL OF 81.15

IFCI : BUY ABOVE 53 FOR TARGETS OF 54.10 AND 55.05. SL OF 52.1

HCC : BUY ABOVE 110 FOR TARGETS OF 112 AND 113.50. SL OF 108.10

Use your own discretion and strict STOP LOSS in each and every trade in this kind of volatile market

Thanks & Regard

Market Pulse S&P Team