"MARKET OUTLOOK & TRADING IDEA FOR TUESDAY (17.05.2011)"

Nifty closed at 5,499.00, down by 45.75 points or 0.83 percent over the previous day closing of 5,544.75, after witnessing a low of 5,487.65 and a high of 5,541.80. Sensex closed at 18,345.03, down by 186.25 points or 1.01 percent over the previous day closing of 18,531.28. It touched an intraday low of 18,319.88 and high of 18,492.68.

The market breadth was negative. Out of 2,899 stocks traded, 1,052 stocks advanced, 1,713 stocks declined and 134 stocks remained unchanged. In Sensex, 4 stocks advanced and 26 stocks declined. 
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VIEWS FROM DIFFERENT BROKING HOUSE: 

FAIRWEALTH SECURITIES: “The Nifty has closed near the low of 5488 i.e.5499 with the weak sentiments and we are of the opinion that below 5476 the Nifty may see the heavy selling pressure. Our view for the current week is bearish. In the next session, range of the Nifty may be at 5476-5531 may take the resistance at 5552 and support may be at 5445/5411. Bank Nifty is expected to trade in the range 10810-11000. If sustained below the range it may test 10750. Above the given range 11340 are other resistance level”. 

BONANZA PORTFOLIO (Shanu Goel): “Market sentiments are likely to get affected by fuel price deregulation news. Much anticipation has been build up, and the actual outcome is likely to provide trigger for the market direction in upcoming days. Nifty is likely to consolidate within the range of 5,350-5,600”. 

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 in Nifty above 5500 level with stop loss placed at 5470 for the targets of 5530-5550 levels. Alternatively, trade short if Nifty breach below 5470 levels targeting lower support levels”. 

GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “ ...‘Technically the market is in a typically sideways zone with 5500 as a strong support zone to work with and 5635 as a strong resistance zone to work with’ the market unfolded as expected and has closed right on dot 5500. Now we are at Make or Break level and if it cracks now then next stop around 5400 or could just bounce back. The support for the Nifty is at 5500-5400 and resistance at 5580-5635. The crucial support on the Sensex on the downside is 18250-18032 and resistance at 18550-18850”. 

IIFL (Amar Ambani): “The market players are worried that the petrol price hike and an imminent revision in diesel prices shortly will add to the inflationary pressures, triggering more rate hikes from the RBI. A weak trend across global markets also weighed on the sentiment on local bourses today. Going forward, the sentiment will be driven by any announcement on diesel price hike from the Centre and partly by the events in the overseas markets. FII selling remains a cause for concern for the Indian market as well. The market has turned volatile of late and thus it calls for extra caution on the part of the market players”. 

MICROSEC SECURITIES: “The daily chart of Nifty is showing that it has been facing a strong support near 5470 for last few trading sessions. So 5470 become a short term crucial base of Nifty. If it breaks 5470, it may further go down to 5440 and then 5375. However, a successive breach of 5610 would open the gate for 5760 in the extreme short term. On an intra-day basis Nifty has a support at 5470 and is likely to face a stiff resistance near 5530. If Nifty breaks 5470, it may further go down to 5440 and then 5400. However, if it is able to sustain above 5530, the level of 5575–5610 would become the next target”. 

EDELWEISS FINANCIAL ADVISORS: “On the lower side Nifty is likely to face strong support in the vicinity of 5380-5400 level, the level (5400) which consists of the highest OI (i.e. 78.87 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 5550-5580 level, the level (5600 which consists of the second highest OI (i.e. 73.08 lacs shares) among the Nifty Call Options”. 

NIRMAL BANG SECURITIES: “The trend still continues to remain weak as markets are not witnessing any fresh buying happening at higher levels. We are also not seeing any kind of real bounce back happening and sustaining for longer time period, indicating that the call is to be on the short side. It looks like markets are about to break some serious levels in the near term. Important Support for Nifty future seen at 5456 and Resistance at 5532. Fresh round of sell-off could be seen only if Nifty slips below 5400-5375, till then there is a possibility of markets bouncing back from their support levels”. 
ANGEL BROKING (Daily Outlook): “The trend deciding level for the day is 18,386/5,509 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18,452–18,559/ 5,531–5,564 levels. However, if Nifty trades below 18,386/5,509 levels for the first half-an-hour of trade then it may correct up to 18,279–18,213/5,477-5,455 levels”. 

BONANZA ONLINE: “Nifty showed selling pressure and closed just around 5500 levels with bearish market breadth. However, many of the stocks are trading in oversold region. And if Nifty hold the immediate support of 5470-5440, some recovery may be seen above 5500-5530 levels. For daily Purpose, Trend deciding level is 5530. If Nifty shows strength above 5530 levels, then rally to 5565/5605 levels may be seen. If Nifty does not show strength above 5530 levels then selling pressure till 5440/5400/5350 may also be seen”.