Market Out Look 05-OCT-2009

On weak global cues market to open flattish with negative bias during the morning session and there after expected to be volatility for the day.

Nifty seems to be losing its strength, for the rally to continue it should holds the 5000 levels and can test 5150 in the coming days and however in the intraday it can test the 5000 levels which should be a strong support level and if closes below this can weaken further, at this market condition traders should maintain a cautious approach at higher levels and one has to lighten their long positions and re-enter at lower levels.

Nifty to trade in the range 5000-5150 levels, a break below either side to give a new direction to the market, A close above 5100 can take nifty to 5200 levels in the coming days and a close below 4950 to drag the nifty to 4790 in the coming days, Nifty to have support at 5050/5020/4980 and resistance at 5100/5120/5180 for the day.

One can take position in the below give sectors and stocks on dips for the day with a view for short-term gains.

Today IT, METAL & INFRA stocks to be will be in limelight.

Watch for GMRINFRA, RCOMM and REC for the day.

The following are the scrip’s to buy for medium –term gains.

GMRINFARA >76, >IDBI >127, DCB >42, IDFC >157, GTL INFRA >42, ISPAT >25, RCOMM >323 & ZICOM >102

Have a nice trading day.