MARKET OUTLOOK 
                         OCT 23, 2009

                        

 

SUPPORT

TODAY’S MARKET LEVELS

RESISTANCE

2

1

1

2

16606/525/434

16721/683

SENSEX – 16789.74

16838/890

16952/980

4932/07/4880

4968/56

NSE - 4988.60

5004/20

5039/47

 

                   OVERVIEW & BRIEF TECHNICAL

 


Third down day and break of D-F line confirms trend change
Within 'G', from 15358, first time we got 3 down days in a row (see chart) suggesting that an established up trend is now disturbed.

We also said in last issue that ... consistently trading below 16997 will be bearish and break of D-F line will give first confirmation of completion of 'G'. SENSEX did it, and indicated trend change.

Now, only a faster retracement of the preceding segment from 16606-17493 is awaited (see chart) to doubly confirm the reversal of the rally. This, we expect (i.e. to break 16606) to happen by Friday or maximum Monday.

Once, 16606 is violated, traders should adopt a strategy of "sell on rise". Supports for the day are at 16721/16683/16606/16525/16434 and resistances are placed at 16838/16890/16952/16980.

 

 

 

 

LONG TERM MARKET VIEW ... Authored in Sept. 2005
(Latest long term view will be updated soon)

 

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STOCK

 

 


 

CMP

 


         SUPPORT

 

 


 

RECOMMENDATIONS

(If limits does not come, sell below S1)



 

S/LOSS

 


RESISTANCE


S2


S1


R1


R2

 

DIVIS LAB

 560 542 552 Go Long on some decline @ 553/555 with a given stop-loss. 541 566 572/80

HCL TECH

 325 313 322 Go Short only below S1 @ 321.50/321 with a given stop-loss. 329 328 331/37

JSWSL

 869 835 858 Go Short on some rise @ 876/878 with a given stop-loss. 891 880 890

REL CAP

 894 876 888 Go Short on some rise @ 902/904 with a given stop-loss. 916 904 908/14

SBI

 2326 2265/35 2315 Go Long on near S2 @ 2266/2272 with a given stop-loss. 2234 2315/40 2355

 

                      (OPEN CALLS OCT. 2009)
                      SMART TRADERS DWELLING RING
                                  RIDE THE TREND TILL THE WEIGHT OF EVIDENCE INDICATES THAT IT HAS REVERSED
                              (DERIVATIVES PICKS
                             (Future prices)
                         
               (If given limit does not come but (NIFTY or Stock trades) beyond T1, you may choose to trade for T2 in desired direction)

STOCK

CALL STARTED ON

TRAD INST

TREND

LONG/
SHORT

S/L

TARGET

TARGET ACHIEVED ON

NO OF DAYS

% RETURN

T1

T2

T1

T2
                       
NIFTY 23/10 FUTURE  DOWN SELL @ 5014/5018 5069 4972 4930/10  

OPEN

    
NIFTY 22/10 FUTURE  UP LONG @ 5124/5126 5088 5154 5172/90  

CLOSED 22/10

 1 Day Limit not come
NIFTY 22/10 FUTURE  DOWN SELL @ 5088/5092 5124 5058 5028/10  

CLOSED 22/10

 1 Day 7.5%
NIFTY 22/10 FUTURE  UP LONG @ 5000/5010 4963 5028 5058/88  

CLOSED 22/10

 1 Day Flat
NIFTY 20/10 FUTURE  DOWN SELL @ 5134/5138 5166 5116 5080/40  

CLOSED 20/10

 1 Day 5.6%
NIFTY 14/10 FUTURE  UP LONG @ 5081/5083 5012 5130 5160  

CLOSED 14/10

 1 Day 6.7%
NIFTY 12/10 FUTURE  DOWN SELL @ 4966/4974 5007 4918 4865/25  

CLOSED 12/10

 1 Day -5.7%
NIFTY 09/10 FUTURE  DOWN SELL @ 5017/5024 5053 4998/64 4936/04  

CLOSED 09/10

 1 Day 13.7%
NIFTY 08/10 FUTURE  DOWN SELL @ 5022/5028 5081 4964/20 4870  

CLOSED 08/10

 1 Day 8.1%
NIFTY 07/10 FUTURE  DOWN SELL @ 5075/5080 5111 5046 4996  

CLOSED 07/10

 1 Day 12.6%
NIFTY 06/10 FUTURE  DOWN SELL @ 5026/5032 5056 4995 4972  

CLOSED 06/10

 1 Day 8.9%
NIFTY 05/10 FUTURE  DOWN SELL @ 5039/5037 5091 5005 4992/72  

CLOSED 05/10

 1 Day 5.7%
NIFTY 01/10 FUTURE  UP LONG @ 5042/5052 4989 5080 5130/70  

CLOSED 01/10

 2 Day 5.9%
NIFTY 29/09 FUTURE  UP LONG @ 4966/4968 4929 5008/27 5048/75  

CLOSED 30/09

 2 Day 16.8%
NIFTY 25/09 FUTURE  UP LONG @ 4962/4966 4919 5010/27 5048/75  

CLOSED 25/09

 1 Day 6.7%

 

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DISCLAIMER:  Author's recommendations are solely made with the purpose to educate the market participants/traders/investors and to enable them to derive maximum benefits by acting upon them. While due care has been taken in preparing these comments, no responsibility will be assumed by the author for the consequences whatsoever, resulting out of acting on these recommendations.