Market Outlook 21-08-2009

It was a dull day for the markets and the volumes too plummeted much below the recent average volumes. Markets practically did nothing after opening with a positive gap and traded narrowly between 4460-4480 for the whole day. It did try to breakout in the last hour but failed to do so. Nifty eventually closed at 4450. Even the stock specific was missing and only a few stocks managed to attract some volumes. Auto majors Maruti and M&M did attract some buying and closed with gains. Some buying was also seen in Capital Goods stocks like Bhel, Siemens, ABB and Crompton Greaves. Idea too was amongst those that witnessed good volumes. A smallish range within the broad range of 4350-4700 is developing between 4375 and 4490 and is visible in hourly charts. We could see some smart upside if Nifty trades consistently above 4495, with possible targets of around 4575-85 and 4610. Stop loss below 4450 could be placed if such a trade materializes. Idea is witnessing good accumulation and seems to be breaking out. It could target 87-88 in the short term. Capital Goods stocks are also showing some buildup. Some upside can be seen in stocks like Bhel (above 2270), Crompton Greaves (above 285), ABB(above 698) and Siemens( above 465). Amongst others some positive bias is seen in Divis(above 488), IOC, JSPL( above 3045), Aban( above 1165), Wipro and Ranbaxy. Nifty has immediate resistance around 4490-95 and then around 4555 while support is seen around 4375- 4390.