market Out Look 02-06-2009

On mixed global cues our market to open flattish with positive bias for the first hour and some selling pressure can be seen in the mid session.
Buy on decline will be the best strategy in this market condition, yesterday’s nifty closed above the 4500 mark which is a positive sign for the market for further rally and can test the 4800 levels in the coming days.
However there will be some correction before it touches the 4800 mark, nifty has strong support at 4414 level, and a close below these levels can pull down the nifty to 4181 levels.

As the government is more focused on the infrastructure development, investor can buy stocks related with this sector such as construction, capital good, power, steel and cement stocks can be bought on decline.

Today activity can be seen in the Oil and Cement stocks.

Yesterday I have purchased HOTEL LEELA and DCB and today will be taking fresh position in Rolta @ 123 -125 levels for long term investment for my clients.

Nifty to take support at 4508/4480/4450 and resistance at 4560/4590/4610 for the day.

Have a nice trading day.