Market Outlook 24-07-2009

Yesterday’s fall turned out to be just a one-day affair and a trap for the sellers as global cues ensured a gapped up opening. After a positive opening market never looked back and picked up sharp momentum in the last 60 minutes after trading around 4480 for most part of the day. Nifty finally closed above 4525 after having failed to do so on couple of occasions in recent times. Now whether this opens up new higher targets remains to be seen as most of the breakouts as well as reakdowns have failed miserably in past one month. Technically, weekly close above 4620 could complete a bullish inverted head and shoulder on weekly charts and that would have extremely bullish connotations. On daily charts 4585-4610 is the next resistance zone but the way market has treated these resistances in past 7-8 sessions it wont be a surprise if this is also overcome easily. Auto stocks continue to make merry and it was Maruti’s turn to make a new all time high. Rcom has close above 276 and is likely to target 290- 295. RIL is approaching crucial breakout levels around 2065-70 as above 2070 stock could target 2175-2190. Other stocks that are looking positive are JSW Steel, Aban, Ranbaxy (above275), JP Associates (above 235), Sterlite, Hindalco (above 91), Power Grid, NTPC (above 210), DLF, M&M and Tata Chem. Nifty now has immediate support around 4445-4460 and then around 4375-85.