Market OutLook 12-OCT-2009

On mixed global cues market to open flattish and to be range bound during the morning session and there in the second session volatility is expected with a negative bias, during the day at higher levels selling pressure to emerge.

Yesterday nifty closed below 5000 levels, As nifty has broken the first support of 4950 and has closed below look nifty losing its strength, In spite of the positive new from reliance and good corporate result nifty is unable to hold the higher levels, traders has to be cautious and book profits and to re-enter at lower levels around nifty 4800 in the next few trading sessions. If nifty closes below 4900 then further sell-off is expected in the coming days. A close above 5000 only will be a positive trigger for the nifty.

Nifty to trade in the range 4900-5000 levels, a break below either side to give a new direction to the market, A close above 5000 can take nifty to 5100 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 4900/4880/4820 and resistance at 4980/5020/5050 for the day.

In POWER SPACE ADANI POWER, RPOWER & NHPC to be active for the day.
In PHARMA SPACE DISHMAN & ORCHID to be active for the day.
In TELECOM BHARTI & IDEA can be bought on dips for long-term point of view.

New Counters for the day
Buy Reliance industries on decline and power stocks to be in demand due to India Bull Power IOP
The following stocks technically good for medium term
IDBI > 133, RAYMONDS > 199, ESCORT >102 and KTK BANK >134,

Have a nice trading day.