Market OutLook 24-AUG-2009

For the last few months market is trading in the range 4300-4700 levels, This support and resistance is due to the positive as well as the negative news flowing in the global and domestic market.

It seems the global economy is coming out of the recession based on the positive data across the global and our industrial data too shows positive signs of recovery, but any how on the side the monsoon concerns looms large in our market and the global picture still not clear.

In this market condition one has to construct a recession –Drought proof portfolio, Invest in sectors such as Pharma, Media and Power which are least effected by the recession and on the other hand avoid sector such FMGC, two wheeler makers, Fertilizers and tractors makers which will be most effected by the drought.

If one applies a prudent investment and trading strategy this will definitely can give reasonable return in the coming days before the market settles.

Today the market to open at higher levels and should hold 4580 levels for the rally to continue and a close above 4650 can take the nifty to 4730 in the next few trading sessions.

Activity to be seen in Pharma, Mid cap IT, Construction and PSU banking stocks.

One can take position in Orchid Chem, 3iinfo, Nagarjuna construction and vijaya bank for short-term gains and also Zicom, Power grid and Ntpc.

Nifty to have support at 4525/4500/480 and resitance at 4580/4620/4650.

Have a nice trading day.