Market Outlook 22-07-2009

Nifty encountered some resistance around 4500-4525 after having moved up sharply by around 600 points. 4430-40 could provide some support but below 4430 it could slip to around 4330-35 and even to around 4260-70 where strong support is likely. Market would need strong follow up momentum to take Nifty past 4525-45, as some decent resistance is likely around these levels. Stock specific moves are likely for next few sessions and mid caps might see heightened activity even as Nifty either corrects or consolidates. Punj Lloyd has managed to close above 230 after a long time. Stock could target 270-75 in coming days if it sustains above Rs 230. Others that are showing positive bias are Jindal SAW( sharp momentum likely above 414), Tata Steel( if it sustains above 403), IDBI( above 105), Ranbaxy, BEML, United Spirits, Adlabs, Biocon( above 215) and Titan. Nifty now has immediate support around 4415-30 while resistance is seen around 4515-25.