"WEEKLY MARKET OUTLOOK & TRADING IDEA FOR THE WEEK 08.10.2012 TO 14.10.2012"

The 30-share index, Sensex gained 175.72 points, or 0.94% to 18,938.46, a 15-month high. On the other hand, the broad based NSE Nifty gained 43.65 points, or 0.77%, to 5,746.95.

VIEWS FROM DIFFERENT BROKING HOUSES:

HDFC SECURITIES: “The 5800 levels on the Nifty seemed to have acted as a resistance as the index failed to move above it convincingly. We expect the markets to weaken a bit and consolidate in the coming week. It is important that any correction in the coming week does not lead to the Nifty moving below the recent lows of 5638. Else the current uptrend would reverse”.

KOTAK SECURITIES (Sanjeev Zarbade): “Post the rally, market valuations are reasonable. The retail interest in the market is returning, which is  a welcome sign”.

CANARA BANK SECURITIES (CanMoney): “Any minor correction may be used to build long positions in companies such as State Bank of India, Larsen & Toubro, Reliance Infra, ICICI Bank, Bank of Baroda, IDFC and HDIL etc.”.

BONANZA ONLINE: “Nifty made shooting star candlestick pattern on weekly charts, which shows that bears are trying to take control. Buying interest may be continuing above 5750 levels. Selling pressure may be seen below 5750 levels. For trading during the coming sessions, trend deciding level is 5750. If Nifty shows strength above 5750 levels then we may see rally till 5800/5860/5940. If Nifty doesn't sustain above 5750 levels then profit booking till 5700/5650/5580/5500 may also be seen”.

Duration	Action	Entry Zone (NF)	For Target of	Stop Loss
For Monday	Buy	5760-5780	5830	5735
For the Week	Buy	5740-5790	5875-5910	5710

GEPL CAPITAL: “The important level for Nifty is placed at 5870 where multiple resistances are seen and can be achieved if current rally continues. For long trading positions, strict stop loss of 5700 is recommended and profit booking is suggested if the target of 5870 is achieved. If the breakdown of 5700 is materialized, then next support level to watch is 5050 which is 50% retracement level”.

KARVY STOCK BROKING: “Long positions can be assumed in FMCG, Realty, Capital Goods, Banking, Energy, Metals and Cement sectors if markets hold 5750 levels. Short positions can be accumulated in IT, Pharma and Utilities if the Nifty fails to sustain above 5750 levels or below 5700 levels. Overall, we expect Nifty to trade in the range of 5650-5850 levels for next week”.

ADITYA BIRLA MONEY (MONEY WEEKLY): “Going forward, the reforms momentum from the government is likely to continue. And with global liquidity being high, India would continue to attract strong FII inflows. We expect our equity markets to continue to do well. Distribution of fund flows from defensives to cyclical and high beta-sectors is likely to continue. Pockets of high beta stocks and mid-caps have a lot of room to move upwards”.

ICICI SECURITIES: “The Nifty has major support around 5680 levels, below which it may test its lower supports placed at 5600/5530 levels. On the higher side, 5800 will remain crucial for the week. Sustainability above 5800 may bring fresh momentum towards 5950. Major movement is expected among the mid-cap segment while the broader Nifty index may continue to exhibit range bound movement. The Bank Nifty is hovering at its straddle formed at the 11500 strike. From a trading prospective, 11200 levels are expected to extend strong support for the banking index while 10750 would be critical on the higher side”.

SMC TRADEONLINE (WISE MONEY): “The index witnessed a breakout from levels of 5400 and managed to breach the psychological level of 5800 mark in Oct series, led by FII buying. Closure of short positions was clearly evident. On the index options front, significant short accumulation was evident in the 5500 and 5600 put-option strikes. The 6000 call-option strikes also saw accumulation of short positions. However the calls witnessed a severe shed-off as Nifty broke past 5700 levels. Currently, option writing in OTM 6000 and 6100 call-option strikes suggest that upside is capped however current Nifty can move up to 5900 levels. Hereafter the range of 5700-5900 will remain crucial in the near term”.

GABA & GABA FINANCIAL ADVISORS PVT. LTD. (Prakash Gaba): "The market should see some more reaction in the days to come. Strong resistance 5810-5869 zones. The crucial support for the Nifty is at 5671 and the resistance is at 5810-5869".

(Mohit Gaba): "We have seen a very strong market in the last few weeks and I don't think we will give up these gains very easily, hence I would recommend going long on dips until the Nifty trades above 5,630 on the spot, like I have done on the Bank Nifty taking partial long positions already and will keep buying more on dips. The Nifty might need a few days more of consolidation before it tries to break out on the upside again".

ANGEL BROKING (Technical): “On the daily chart, we are now observing a negative crossover in momentum oscillators viz, the 'RSI' and the 'Stochastic'. This indicates a possibility of losing the current positive momentum and indices may correct/consolidate in the short term, if the 18740/5694 levels are breached. As a result, our market may drift towards its next support level of 18552-18291/5638-5534. However, keeping in mind the positive placement of monthly 'RSI' indicator and the ADX (9) indicator, our intermediate trend remains intact i.e. bullish. Going forward, only a sustainable move above 19138/5816 can push indices higher towards their next possible targets of 19542-19812/5850-5945 and even the possibility of testing 6000 (Nifty) cannot be ruled out".

MICROSEC SECURITIES: “For the coming week, first support of Nifty is at 5700 and the resistance is 5820. If Nifty breaks 5700, it may further go down to 5620 and then 5550. However, if Nifty is able to sustain above 5820, the level of 5870-5940 would become the next target”.

INDIRATRADE SECURITIES: “For the next week, Nifty likely to trade in the range between 5850-5900 in the upper side and 5550-5500 in the lower side”.

CAPITALVIA GLOBAL RESEARCH: “On the weekly closing basis, Nifty sustaining above the breakout level, we may see index heading towards the level of 5,844 followed by 5,890 level. On the downside, support exists at 5710, 5630, 5530 and 5450”.