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"MARKET OUTLOOK & TRADING IDEA FOR THURSDAY (09.06.2011)"

Nifty closed at 5,526.85, down by 29.30 points or 0.53 percent over the previous day closing of 5,556.15, after witnessing a low of 5,514.90 and a high of 5,556.60. Sensex closed at 18,394.29, down by 101.33 points or 0.55 percent over the previous day closing of 18,495.62. It touched an intraday low of 18,365.94 and high of 18,505.10. 
The markets’ breadth was negative. Out of 2,951 stocks traded, 1,385 stocks advanced, 1,431 stocks declined and 135 stocks remained unchanged. In Sensex, 11 stocks advanced and 19 stocks declined. 
FIIs were net buyers with the tune of ` 50.43 crore (prov. cash market fig.) 
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VIEWS FROM DIFFERENT BROKING HOUSES : 
CANARA BANK SECURITIES (CanMoney):Technically, Nifty witnessed a weak session, today, wherein our indices witnessed a range bound trading session with higher volatility. After last sessions’ positive closing, Nifty witnessed a decline today and closed with cut. Nifty breached the vital support level of 5550 and breached the sanctity of 9 day’s SMA placed at 5,531.This may strengthen the bears, in the forthcoming sessions. Nifty maintained the vital support of 14 day’s SMA placed at 5,487 but closed below its 50 and 100 day’s SMA placed at 5,645 and 5,570. These levels may act as new ranges in the coming sessions. In today’s session, VIX closed at a little higher level of 18.58%, indicating higher than average volatility in market in the forthcoming sessions. RSI (14) for the session was at 49.28 levels and MACD was above the signal line, thus combined together they are giving the signals that, market may witness some range bound movements in coming sessions with higher volatility”. 
FAIRWEALTH SECURITIES: “Nifty tried to test the 1st support of 5510 and it touched the low of 5514 and closed at 5527 showing the weakness in the index with the formation of bearish harami pattern. Next session’s range for the Nifty may be 5510-5552 and the resistance for the Nifty may be at 5571 and the crucial resistance will be at 5608.The support for the Nifty if breaks 5510 then it may test the level 5494 and the level of 5479.The crucial support level will be at 5458 for the day. Bank Nifty is again expected to trade in the range 10750-10960. If sustains above this range it may face resistance at 11160 while 11660 may act as a strong support level”. 
ANGEL BROKING (Mileen Vasudeo):On the daily chart, we are observing an ‘Inside day’ formation which clearly reflects indecisiveness prevailing at current levels. Hence, we maintain our previous day view that if indices trade above 18,546/5,570 levels then it is likely to test 18,673-18,823/5,605-5,650 levels. Any daily close above 18,673/5,605 would confirm a higher top higher bottom on the daily chart and we may witness an accelerated move. On the downside 18,227-18,124/5,462-5,430 may act as a support for the day”. 
IIFL (Amar Ambani):The decline came on fairly thin volumes, underscoring the ongoing lack of interest among the market participants amid near-term uncertainties. FII inflows have been very, very muted to have a major impact on the sentiment. The Centre’s dithering on fuel prices and other important policy issues is another cause for trepidation. IIP, inflation and the RBI meet will be the near-term events to keep an eye on apart from the offshore developments”. 
MICROSEC SECURITIES:Nifty has been moving in the narrow range of 5470 and 5610 for last seven trading sessions. We expect, this range bound movement would be continuing for another few days. If Nifty is able to maintain above 5610, an upward rally might carry it to 5760 in extreme short term. However, if it breaches 5470, in may come down and take support near 5300. On an intra-day basis Nifty has a support at 5500 and is likely to face a stiff resistance near 5575. If Nifty breaks 5500, it may further go down to 5470 and then 5440. However, if it is able to sustain above 5575, the level of 5610–5665 would become the next target”. 
BONANZA PORTFOLIOS (Puneet Kinra): “Nifty showed selling pressure from higher levels and closed in red. Nifty is still trading in 5,480-5,615 zones, until Nifty manages to show strength above 5,615 or below 5,380 levels, volatility and range bound scenario may be continuing. Traders should be cautious within this range. For daily purpose, the trend deciding level is at 5,530. If Nifty shows strength above 5,530 levels, then rally to 5,560/5,615/5,650 levels may be seen. If Nifty does not show strength above 5,530 levels then selling pressure till 5,480-5,450/5,400 may also be seen”. 
KARVY STOCK:  “Trade long in Nifty above 5,500 levels with stop loss placed at 5,480 levels targeting 5,550 and 5,570 levels. Alternatively, trade short if Nifty slips below 5,480 levels targeting support of 5,450-5,430 levels”. 
GEOJIT BNP PARIBAS FINANCIAL SERVICES (Alex Mathews): Nifty today showed weakness in the second part of the day apart from the trend it showed in the past two sessions. Tomorrow is a crucial day which will set the course for the markets in the short term either to move above 5,616 or move below 5,424-5,350 levels. If the diesel and LPG prices are hiked then it will have a cascading effect on various sectors like auto, manufacturing, transportation, realty, banking and so on and so forth leading to rise in inflation. Our inflation is still above the RBI comfort zone and if things get out of control they will use the magic arrow from its quiver which is the interest rate hike. Interest rate in a country like ours where borrowed money means a lot, if hiked, will eat away a good portion of the company’s profits in coming quarters”. 
EDELWEISS FINANCIAL ADVISORS: “On the lower side Nifty is likely to face strong support in the vicinity of 5480-5500 level, the level (5400) which consists of the highest OI (i.e. 89.19 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 5600-5620 level, the level (5600) which consists of the highest addition in OI (i.e. 4.77 lacs shares) among the Nifty Call Options”. 
SWASTIKA INVESTMENT:The Nifty Index opened with a gap down of 20 points from the last session at 5535.25 levels and consolidated in the range of 40 points between the levels of 5515(low) to 5556(High) and remained in the red territory for the whole trading session. It finally ended at 5526.85 with a loss of 0.53%. It was not able to surpass the 5570 mark. As, per our last report 5520 acted as a strong support. In the Daily chart, Nifty has formed a Red Candlestick with small real body and higher upper shadow indicating sellers were aggressive at higher levels. For the coming trading session Resistance for Nifty is seen at 5550/5575 and Support for the day is seen at 5510/5490”. 
ANGEL BROKING (Daily Outlook):The trend deciding level for the day is 18,422/5,533 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18,478–18,561/ 5,551–5,574 levels. However, if Nifty trades below 18,422/5,533 levels for the first half-an-hour of trade then it may correct up to 18,338–18,283/5,509–5,491 levels”. 
NIRMAL BANG SECURITIES:The undertone of market is positive as buying interest is visible at lower levels but the only concerned is that Nifty future is not able to sustain above the 5585–5608 level, which shows that fresh buying is absent at higher levels. Going forward it’s very important to see whether nifty future will hold 5467-5440 in the near term. This current up-trend could damage only if nifty future starts trading below 5467 till then any decline could be considered has a buying opportunity”. 
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