Tuesday, October 20, 2009

Market outlook for 20/10/09

On the eve of mahurat trading markets opened higher but could not sustain the rise. Nifty closed flat. But the under current is bullish as per mid cap stocks and momentum stocks. The lesser volumes can not give us the perfect insight for market swings. The heavy discount through out the one hour is some what tricky?
  • Nifty future sheds further means no short term trend reversal.
  • Now US markets are bullish overnight.
  • Global markets are bullish.
  • FII data bought in cash, bought in index future but sold in stocks futures (as usual).
  • SGX nifty is up.
  • Shanghai Composite up & Seoul Composite up.
Overall view: As seen the rising wedge nifty has to face resistance at 5200. If crosses let us wait for the level 5330-5370-5400. This 5400 zone is just 75% retracement level of total fall from January 2008. My personal view is no danger for two days for longs. If there is rise with speed one may expect a complete swing reversal for the next week to close the settlement at lower levels may be 5200 zone after touching 5400. The correction less run for the all time high within the financial year is also possible.

A view on Reliance: If crosses 2375 very strong chances of crossing 52 week high.

NIFTY Technical
Current Spot: 5142.15
Pivot: 5128.30
3DEMA: 5115
7DEMA: 5076
Supports: 5107 - 5128
Resistance: 5163 – 5185

Target Nifty
Buy Nifty above 5150 - 5160 - 5170 - 5185 - 5200 - 5211 - 5223 SL - 5135
Sell Nifty below 5118 - 5106 - 5095 - 5080 - 5065 - 5050 - 5020 SL – 5130

Option & Futures Call
Centurytex: Buy Oct Fut around 526/528 for a target of 560 in 4/5 trading sessions. In fact you may see the target being met in today's trade itself.
LITL: Buy Oct Fut around 550/552 for a target of 580 which may materialize in next trading session.
Nagarconst: Buy Oct Fut at 164/166 and cover your position at 174. In case you are unable to square off position today then hold for just one more trading session as BTST position.
Buy Bharti 350 CA (October Expiry) @ Cmp Of 6.00

Stock Ideas for the Day
Reliance: Buy above 2240 for targets of 2250 and 2263 SL of 2232
Bharat Forge: Buy above 290 for targets of 294 and 296 SL of 287
IVRCL Infra: Buy above 421 for targets of 425 and 429 SL of 418
Escorts: Buy above 131 for targets of 133 and 136 SL of 125
TCS: Sell below 603 for targets of 600 and 596 SL of 610

Positional Call: (7-15 days)
Buy Deccan Gold Mines Ltd (Medium term target- 100)
Buy Merck Limited (Short term target- 700)
Buy Anant Raj Industires (NSE:ANANTRAJ) @ CMP 153.20, Target 180 in 1-2 Months.
Asian Granito India Limited (Short term target- 100)

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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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.
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