Market Outlook 16-09-2009

Market maintained its uptrend as bulls tightened their grip on the markets. Banks and metals continued to seek higher levels as advance tax figures of Banks in particular further strengthened the uptrend. Lot of banking stocks hit new highs. Indian Bank led the pack with almost 11% rise on huge volumes. Other big movers were Dena Bank, IOB, IDBI, BOI, Union Bank and Allahabad Bank. The uptrend was not restricted to banks only as other sectors too threw gainers. Sesa Goa, JSPL and Jindal SAW led the metals pack. Other major gainers for the day were Cummins, Bajaj Auto, Hotel Leela, DCHL, Patni, DLF, BRFL, Praj and Unitech. Overall trend was also positive, as there were around 3 gainers for each losing counter. Nifty is knocking at the doors of 4900 and it could target 4980-85 if it sustains above 4860. Banking stocks have shown great momentum and even now more upside cannot be ruled out in few of the banking stocks. This pack might continue to do well or alternatively might just stop for a pause as many stocks have entered highly overbought zone. But the momentum suggests that more upside is very much on the cards even after a pause or consolidation. Indian Bank has given a fresh breakout by closing above Rs 155. Stock is likely to target Rs 185- 90 in coming days. Uco bank, Syndicate bank and union bank too could eye higher levels. IDBI could target 122- 124 if it sustains above 111. REC seems to have completed its corrective move and has resumed its uptrend. Other stocks that are looking good are Tata Chem, Voltas, Welspun Guj, Unitech, Tata Steel( above 497), Ranbaxy( above 347) and Neyvelli. Nifty has immediate support around 4860-65 while it could target 4950 and 4980 above 4890.