Friday, October 16, 2009

Market outlook for 16/10/09

15-10-09 trading shows that the nifty faced resistance at 5152 and corrected to 5077, but took support at this level and nifty closed at 5109-9 points.

• FII bought in cash, sold in index and stocks futures.
• F&O data nifty future sheds -4.8 lakhs.
• Option writings more put writing than calls.
• US markets are positive. Global markets are +ve but flat.
• SGX nifty +ve.

Over all view: In the run up markets faced resistance at 5152 and corrected to 70 points but raised and closed flat. Means that the correction to the run up is over. But as seen from FII additions in stocks futures on sell side it is expected that the markets will have to come down from this levels either now it self or after some days. The nifty futures is not showing any addition of open interest to up side. This is a worrying factor for bulls. But the addition of option puts on down side gives support to the markets from major down fall.
Hold calls above nifty 5050 for a target 5220-5310. If nifty breaks 5050 buy puts but stop loss for puts will be 5050 only.

NIFTY Technical
Current Spot: 5108.85
Pivot: 5110.40
3DEMA: 5015
7DEMA: 5008
Supports: 5076 - 5042
Resistance: 5144 – 5179

Target Nifty
Buy Nifty above 5130 - 5148 - 5168 - 5187 SL - 5105
Sell Nifty below 5092 - 5073 - 5055 - 5037 SL - 5110

Stock Ideas for the Day
Reliance: Sell below 2175 for targets of 2169 and 2160 SL of 2188
Escorts: Buy above 127.30for targets of 133.03 and 136.15 SL of 124
Essar Oil: Buy above 166.25 for targets of 170.10 and 173 SL of 163
Nitco Ltd: Buy above 56.25 for targets of 58.10 and 60.20 SL of 54

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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