Market Out Look 06-OCT-2009

On weak global cues market to open at higher levels during the morning session and there after expected to be volatility for the day, a pullback rally can be expected today however at higher levels selling pressure to emerge.

Nifty seems to be losing its strength, a close below 5000 levels can drag the nifty to 4900 and then 4790 levels in the coming days for the rally to continue nifty should close above the 5100 levels, I see a strong support at 4800 levels anyhow 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 4950-5100 levels, a break below either side to give a new direction to the market, A close above 5100 can take nifty to 5250 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 4910/4950/4980 and resistance at 5040/5060/5100 for the day.

One can buy Rcom today around 288 today

Traders can go short at higher levels in Metal and IT stocks for the day

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

GMRINFARA@57 , IDBI@110 , DCB @36, IDFC@141 , GTL INFRA@37, ISPAT@22 , RCOMM@288, Rpower@ 152 & ZICOM @91

Have a nice trading day.