"MARKET OUTLOOK & TRADING IDEA FOR WEDNESDAY (22.06.2011)"

Nifty closed at 5,275.85, up by 17.95 points or 0.34 percent over the previous day closing of 5,257.90, after witnessing a low of 5,257.00 and a high of 5,322.45. Sensex closed at 17,560.30, up by 53.67 points or 0.31 percent over the previous day closing of 17,506.63. It touched an intraday low of 17,504.27 and high of 17,714.88.

The markets’ breadth was negative. Out of 2,898 stocks traded, 1,125 stocks advanced, 1,667 stocks declined and 106 stocks remained unchanged. In Sensex, 15 stocks advanced, 14 stocks declined and 1 remained unchanged. 

FIIs were net sellers with the tune of ` 563.36 crore (prov. cash market fig.) 

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VIEWS FROM DIFFERENT BROKING HOUSES: 

HDFC SECURITIES: “Today, we expect the Indian Markets to open in the green and inch up further during the day. Support on Nifty is at 5,250 while resistance is at 5,350. Among the sectors, Metal and Telecom stocks could do well today”. 

CANARA BANK SECURITIES (CanMoney): “Technically, Nifty witnessed a busy session, after a flat opening, bulls were in commend and Nifty breached its vital resistance of 5300 levels, short covering together with bargain hunting had a cascading effect, that supported Nifty to scale up to 5320levels. But owing to profit booking at higher levels Nifty could manage to close with modest gains. Volatility was the characteristics of today’s trade, wherein sudden bouts of buying and selling were witnessed by benchmark indices. Nifty breached the vital support level of 5300 after regaining it but closing above 5250, will support the buying momentum. Nifty failed to maintain the vital moving averages and closed below its 9, 14, 50 and 100 day’s SMA placed at 5415, 5458, 5570 & 5544. These levels may act as new ranges in the coming sessions. In today’s session, VIX closed at a little higher level of 21.31%, indicating higher than average volatility in market in the forthcoming sessions. RSI (14) for the session was at 31.63 levels and MACD was below the signal line, thus combined together they are giving the signals that, market may witness some recovery amidst range bound movements in coming sessions with higher volatility”. 

FAIRWEALTH SECURITIES: “Next session’s range for the Nifty may be in the range of 5252-5322 and the resistance on the upper side may be at 5348 and 5380 will be called the key resistance for the day and the support on the downward side may be at 5232 and 5196 and the key support for the day will be 5177. Bank Nifty is expected to trade in the range 10360-10580. If sustains below this range 10335 may act as a crucial support. However, 10660 and 10735 may act as another strong resistance level”. 

BONANZA ONLINE: “On Tuesday, Nifty showed volatile session and closed on flat note. Sentiments are still weak as Nifty is trading below 5300-5320 levels. On downside, support may be seen at 5200-5150 levels. On the other hand, if Nifty manages to maintain above 5300-5320 levels then recovery may be seen. For daily Purpose, Trend deciding level is 5270. If Nifty shows strength above 5270 levels, then rally to 5300-5320/5400 levels may be seen. If Nifty does not show strength above 5270 levels then selling pressure till 5200/5150/5100 may also be seen”. 

KARVY STOCK:  “The market will take cues from the global markets and is expected to open on a flat note tomorrow. Trade short in Nifty below 5280 levels else around 5300, with stop loss placed at 5320, targeting 5250-5230 levels”. 

GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “Technically the market has unfolded flat… technically the market is still down and we have a stiff resistance at 5350 and so in all fairness rallies until 5350 could be treated as reactions. The support for the Nifty is at 5170-5100 and resistance at 5350. The crucial support on the Sensex on the downside is 17230 and resistance at 17810”. 

ANGEL BROKING (Mileen Vasudeo): “On the daily chart, we are observing that negative sentiments still persist and most traders are cautious at current levels. In coming trading session if indices trade below 17504/5257 then it is likely to test 17314-17295/5195-5177 levels. Although the short term trend is negative, a bounce up to 17716-17844/5321- 5360 cannot be ruled out as the oscillators in the hourly chart are in an oversold zone”. 

IIFL (Amar Ambani): “The FOMC announcement on Wednesday and Ben Bernanke’s conference will be the important event to watch out for. From India’s point of view, a possible upward revision in its weightage by MSCI could shore up the mood a little bit. One must be cautious at this juncture, as things have become quite volatile”. 

MICROSEC SECURITIES: “The daily chart of Nifty is showing that it has given a correction of almost 5.9% in last five trading sessions. Now the short term crucial support of Nifty lies at 5170. If Nifty braches 5170, it may further go down to 5100 and then 4960. However some leading indicators (like Stochastic and RSI) are giving oversold signal of Nifty. So some pull back rally to 5400 can not be ruled out in the extreme short term. Traders are advised to maintain a strict stop loss at 5170 of the long positions. On an intra-day basis Nifty has a support at 5240 and is likely to face a stiff resistance near 5320. If Nifty breaks 5240, it may further go down to 5210 and then 5170. However, if it is able to sustain above 5320, the level of 5360–5400 would become the next target”. 

ANGEL BROKING (Daily Outlook): “The trend deciding level for the day is 17,663/5,285 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,822–18,084/ 5,313–5,351 levels. However, if Nifty trades below 17,663/5,285 levels for the first half-an-hour of trade then it may correct up to 17,401–17,242/5,248–5,220 levels”. 

INDIRA SECURITIES: “The markets gained moderately on Tuesday and Monday’s dampener RIL played a big role in the upward movement. Realty and capital goods were the biggest losers in today's trade while IT remained the best performer. For today’s trade, market likely to trade in the range between 5300 & 5370 in the upper side and 5250 & 5200 in the lower side”. 

EDELWEISS FINANCIAL ADVISORS: “On the lower side Nifty is likely to face strong support in the vicinity of 5200-5220 level, the level (5200) which consists of the highest OI (i.e. 81.55 lacs shares) among the Nifty put options. On the other hand on the higher side Nifty is likely to face strong resistance in the vicinity of 5300-5320 level, the level (5300) which consists of the highest addition in OI (i.e. 6.34 lacs shares) among the Nifty Call Options”. 

NIRMAL BANG SECURITIES: “The overall trend remains very weak and cautious as nifty is not able to sustain the rally at higher levels in the absence of any positive triggers. The momentum indicators MACD on the weekly chart is also trading below the zero line which is a big negative indication for the markets. Overall trend remains weak as huge selling pressure continues in large beta stocks like SBI, ICICI bank, Bhel, Sail, LT and DLF. This current downtrend could reverse only if nifty future trades above 5370 levels. On the lower side important support placed at 5225/5175/5135 levels. Bank Nifty index @ 10474 is holding above its important trend-line support of 10330 and going forward if this point gets violated then we could see a major crack-down. Downside support exits at 10200/10080”. 
SWASTIKA INVESTMENT: “On daily charts, Nifty made a White Candlestick having no real body with long upper shadow indicating that sellers dragged the index towards lower levels. In yesterday’s session also, index could not hold at 5300 mark decisively. Hence, for the coming trading session, if Nifty continues to trade consistently below the levels of 5300 then downside rally may continue. Support for the index can be seen at 5250/5220 while on higher side it can face resistance at 5310/5350”. 

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