"MARKET OUTLOOK & TRADING IDEA FOR THURSDAY (21.04.2011)"

After giving a gap up opening, the benchmark Nifty traded in the “positive territory” through out yesterday’s trading session. At the end of day it closed near day’s higher point at 5851.65. It had a net gain of 110.90 points or 1.93% over the previous day’s close. The buying was witnessed across the board. However, Auto, Information technology, Metal and Consumer durable stocks were on the buyers’ radar. The further up move is expected on IT and Metal stocks.

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Among the companies, Reliance Industries, TCS, Jindal Steel & Power, Hindustan Zinc, Nestle India, Mindtree, Coromandel International, Raymond, Honeywell Auto are scheduled to announce result today.

VIEWS FROM DIFFERENT BROKING HOUSES:

SKP SECURITIES: “Nifty future may face resistance at 5885-6000 and take Support at 5800-5700”. 

CANARA BANK SECURITIES (CanMoney): “Technically, after last session’s positive closing, today, Nifty exhibited a very firm show and closed the session after racking good gains. Chart wise after yesterday’s spin top, today Nifty made one big bullish candle to continue its positive tempo. On the back of a good buying spree, Nifty regained the vital supports of 5800 & 5850, which may a crucial resurrecting point for the bulls. Today, Nifty witnessed good buying in the indices heavyweights and after a lull of past three sessions, managed to surpass 9 & 15 day’s SMA placed at 5829 & 5838 this may spur positive feeling among the buyers. Today, once again bulls outnumbered the bears, which is a positive trend for market. AT closing, Nifty successfully maintained its closing above 50 & 100 day’s SMA 5564 & 5702. These levels may act as new supports, in coming sessions. In today’s session, VIX corrected a little and recorded at 20.99%, indicating lower volatility in market in the forthcoming sessions. RSI (14) for the session was at 58.58 levels and MACD was below the signal line, thus combined together they are giving the signals, that market may witness range bound movements in coming sessions”.

FAIRWEALTH SECURITIES: “In the next session Nifty is expected to trade in a wide range 5810-5923. If sustained below this range 5759 might act as another support level. Further, 5944 may act as strong resistance level. As stated in the previous newsletters, traders are suggested to remain bearish as long as Nifty is trading below 5944. Bank Nifty is expected to trade in the range 11861-11610. If moved beyond the range 11960 and 12060 may act as resistance level while 11550 may act as strong support levels”.

KARVY STOCK:  “The market will take cues from the global markets and is expected to open on a flat to positive note tomorrow. Trade long above 5850 level, else around 5830 with stop loss of 5800, targeting 5900 or 5950 levels”.

PINC RESEARCH: “Today’s market performance was a clear vindication of the view that was stated yesterday. In our last report we had categorically observed about Nifty’s refusal to go south of 5700. Such a defiance to go below 5700 provided us the cues to state that Nifty may have made a low at 5695. The level of 5950 is the area of resistance for this move. Also, 5950 is the zone where Nifty will counter trendline resistance (refer chart). A move above 5950 will be classified as a breakout and can propel the Nifty towards higher target to atleast 6150”.

GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “.....‘Technically the market is in a pause mode and so I would say that so far 5700 is a strong support to deal with as long as it holds’ the market held on to 5700 and closed hugely positive for the day trapping the shorts built into the system… technically 5900 levels is still possible. The support for the Nifty is at 5800 and resistance at 5900. The crucial support on the Sensex on the downside is 19300 and resistance at 19650”.

ANGEL BROKING (Mileen Vasudeo): “Market witnessed a gap up opening and momentum on the upside was seen till the end of the day to close near days high. On the daily chart, we are observing that prices after taking support at the 200-daySMA are now heading to test the downward sloping trend line joining the two significant highs of 21,108-20,664/6,338-6,181. In coming trading session, if indices trade above 19,490/5,860 levels then they are likely to test 19,649-19,737/5,900-5,923 levels. On the downside, 19,171-19,000/ 5,760-5,700 may act as support for the day”.

IIFL (Amar Ambani): “It was mostly a Large-Cap led rally but the non-index counters also managed to join the party. The market gave up quite a bit of ground in afternoon after a CBI court dismissed the bail applications of five accused in the 2G scam. But, the sentiment soon rebounded after European stocks accelerated on the back of stellar results from top US technology companies. The market could gain slightly more if the global rally prevails. But one has to be careful at this stage in picking the right stocks”.

MICROSEC SECURITIES: “On an intra-day basis Nifty has a support at 5805 and is likely to face a stiff resistance near 5880. If Nifty breaks 5805, it may further go down to 5775 and then 5740. However, if it is able to sustain above 5880, the level of 5915–5970 would become the next target”.

BONANZA PORTFOLIOS (Puneet Kinra): “Nifty showed good strength and closed in green. Nifty is trading within 5,950-5,700 range and showing volatile movements in this range. Until Nifty manages to decisively breakout above 5,950 levels or below 5,700 levels, volatility may be continuing. Reliance Industries results on Thursday may play important role in sentiment preparation, traders should be cautious. For daily purpose, trend deciding level is at 5,850. If Nifty shows strength above 5,850 levels, then rally to 5,900/5,950/6,000 levels may be seen. If Nifty does not show strength above 5,850 levels then profit booking till 5,780/5,725 may also be seen”. 
ANGEL BROKING (Daily Outlook): “The trend deciding level for the day is 19,376/5,823 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,580–19,689/5,886–5,921 levels. However, if Nifty trades below 19,376/5,823 levels for the first half-an-hour of trade then it may correct up to 19,266–19,062/5,788–5,725 levels”.

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