Market Outlook 04-08-2009

Markets opened on a slightly positive mode and after sometime around the previous close, gained momentum in the later half to close on a new 52 week high. Nifty crossed 4700 and closed above this mark after a long time. BHEL and metals led the rally as almost all the heavyweights moved higher. Auto stocks continued to rally and Maruti, M&M and Tata Motors registered new highs. Bullishness spread to mid caps too as stocks like Praj, Aban, Finanacial Tech, United Phos and Sugar stocks pushed for higher levels. In fact, many sugar counters registered new highs. Nifty is now in a new territory as far as the past 12-15 months are concerned and has given a good breakout by closing above 4700. 4570-85 becomes a good support in the short term even as Nifty tries to move higher to around 4925-4950. Amongst the index movers, SBI, Tata Steel, Tata Motors and Bhel are looking good and more upside is likely in these counters. ZEE and JP have also closed on new highs and are likely to see sharp up moves if they were to trade consistently above 200 and 250 respectively. Praj could move to around 112-115 in coming days. Punj Lloyd has Some resistance around 257-260 and above 260 it could target 285-290. Amongst others positive bias is seen in stocks like BEML (above 1095), India info line, Sterlite and Financial Tech. Nifty has immediate support around 4620-4635 and then around 4575-80 while some resistance is seen around 4775-4790.