Market OutLook 28-AUG-2009

On global cues market to open flattish with negative bias with some volatility for the day, yesterday’s close indicates bullishness in the market for current F&O settlement, For this rally to continue nifty should trade above 4730 and close above 4750 levels for the next target of 4820 in the next few trading sessions, A close below 4600 can drag the nifty to 4520 and thereafter can test 4410 levels.

Market is in consolidation mode and during this period, we expect the nifty to trade in the range 4200-4750 levels for the next few months, either side break to give a new direction to the market, We are in the view that market to test new high in the days to come.

To be winner during this consolidation phase one has to pick mid cap stocks in sectors like construction,Reality, Pharma,Media and capital goods for short-term gains.

Accumulate stocks like PSL Holding, Videocon, Elecon Engg ,Action construction, Ansal Infra, FSL , Noida toll and Zicom for medium –long term gains as bottom line of these companies to improve from the current levels.

Nifty to have support at 4652/4620/4580 and resistance at 4720/4750/4780 for the day.

Have a nice trading day.