Market OutLook 04-DEC-2009

On weak global cues market to open slightly lower side with negative bias during the morning session, bounce back can be expected from 5080 levels, and thereafter from the midsession expected to be volatile till the close.

Yesterday nifty opened with a strong notes, but could move above its strong resistance of 5180 and close below 5150 indicating further selling. However nifty can take support at 5080-5070 in the intraday trading today.

For this rally to continue nifty should trade above 5150 levels, now 5080 to be considered as strong support and on the other hand will face resistance as 5180 level a close above 5180 can take nifty to new high in the coning day and in that case nifty can test 5350.

In my view nifty will trade in the range 5020-5350 for the current month, either side break to give a new direction to the market.

Investors are advised to be cautious and take long positions in large caps stocks only if nifty closes above 5180 level, but can look at mid caps stocks even at current levels.

Today in the intraday nifty to trade in the range 5050-5180 levels, either side break to give a new direction to the market.

Technically nifty can take support at 5100/5070/5040 and resistance at 5150/5170 /5190 for the day.

WATCH OUT FOR MID CAP IT STOCK WHICH WHERE MORE ACTIVE IN YESTERDAYS TRADING.

POLARIS,ROLTA,3IINFO,SONATA SOFT,MPHASIS AND PANTI LOOKS GOOD FOR THE DAY EVEN ITS A GOOD BUY FOR SHORT-TERM POINT OF VIEW.

INVESTORS CAN BUY ORIENT PAPERS, TNPL, BILT IN PAPER SPACE WITH SHORT-TERM VIEW.

SELLING CAN BE SEEN IN LARGE CAPS STOCKS SUCH AS ICICI BANK,TATASTEEL AND SBI.

Have a nice trading day.