Market Snapshot
Markets ended on a negative note despite good guidance from Infosys and better than expected IIP nos (11.7% vs. 10.3% last month). Industrial production data for November 2009 stoked expectations that the central bank will tighten monetary policy to temper inflationary pressures. Banking, realty and metal stocks fell. IT was the only sector that outperformed the market. The futures volumes improved and picked up in yesterday's session. We believe that leveraged positions in the system are likely to pick up in the coming sessions.
Sentiment Indicators
On Nifty 5300 CE continues to add OI (5.5mn shares) and 5200 PE holds maximum OI (4.7mn shares). 5300 continues to be formidable resistance for the Nifty, while 5180-5200 would hold as a good support level. The Implied volatility is still hovering in the lower range of 20-22%
Outlook
Nifty is expected to open around 5180 at support levels. We see the Nifty levels to come down. It's a good opportunity to start buying at low levels for an immediate target of 5300. We recommend buying in DLF RIL, HUL on correction.
Technical Overview:
The Nifty formed a big red candle and breached the trend line support of 5220. While the resistance level of 5300 has been insurmountable, the index is now likely to test support zone of 5140-5180. The overall trend remains positive while momentum is negative. The index is expected to take support here and rally again. Near term resistance in the nifty is placed at 5300 above which bigger breakout is possible
Nifty Resistance: 5248 / 5269 Support : 5183 / 5167
Post a Comment