Market Outlook 13-08-2009

Yet another volatile day but it was almost reverse of the Tuesday’s trading pattern. Markets opened lower and dipped further below 4400. IIP figures were announced and markets slipped further and it looked as if market might struggle to find support at around 4370. Just when all looked lost, buying emerged at lower levels in certain key stocks like Tata Motors, Bharti, and JSPL amongst others. Sharp recovery followed as Nifty moved up strongly to close just around yesterday’s close. This meant a recovery of more than 100 points from intra day low. Pantaloon was the biggest gainer as it gained around 14% on huge volumes. Aban attracted smart buying in the last 30minutes to close above 1150. Other big gainers were HDIL, Ranbaxy, Bharti, JSPL, Glaxo, Tata Tea and IDFC. Metals were the weak spot and losses were seen in Sesa Goa, Tata Steel, Hind Zinc and JSW steel. Some PSU banks too suffered losses despite some late recovery. Volumes improved while breadth was slightly negative. Nifty slipped below 4370 for a brief period before bouncing back sharply. This means that 4370 support still holds and in fact now assumes more significance as its twice now that Nifty has reversed directions from around this level. Now, it’s likely that market could have another shot at 4525-40 resistances. Aban has given a strong breakout by closing above 1125 and it’s likely that it would target 1245 and even 1310 in coming days. Suzlon is showing signs of reversal and could be held with a stop below 81 for targets of 96 and 108 in coming days. Other stocks that are showing positive bias are Aurobindo, Divis (above 476), Tata Chem, DLF, IDFC, LITL (above 424), Unitech, Jindal SAW, Educomp (above 3650) and ACC. Nifty has immediate resistance around 4525-40 while support is seen around 4390-4410.