Market OutLook 28-OCT-2009

On global cues gap down open is expected in the market in the morning session of trading and from the lower levels bounce back is expected in the mid-session and thereafter it will be volatile for the day.

Nifty to have support at 4814 which is the 50 DMA for nifty, If breaks 4810 levels then nifty can test 4785 level for the day itself. A close below 4750 can drag the nifty to 4560 levels in the next few trading sessions, if nifty holds the 4750 levels a bounce is expected in the market.

Yesterday nifty closed below 4900 which indicates further weakness in the market, traders can watch for 4790 level to go long for the day else further sell -off is expected.
Long-term investors are advised to wait for next 1-2 trading sessions before entering in the market.

IN BANKING SPACE FUTHER SELL-OFF IS EXPECTED
IN CAPITAL GOODS SPACE FURTHER SELL –OFF IS EXPECTED
IN PHARMA & FMGC SPACE LONG POSITION CAN BE CONSIDERED

Further sell-off is expected in the following stocks.

IDBI sell below 120 with a stop-loss of 123 for a tgt of 112
ANDHRA BANK sell below 110 with a stop-loss of 112 for a tgt of 102
DENA BANK sell below 66 with a stop-loss of 68 for a tgt of 62

Have a nice trading day.