Market Outlook 25-09-2009

Markets opened on a negative note as global cues put pressure on the indices. But market again displayed remarkable strength as after spending some time around 4900, Nifty moved higher in the later half to close just below 5000. Banking stocks again were the highlight of the day and it were the smaller banks that emerged as strong gainers. Huge gains were witnessed in Uco Bank, Dena Bank and Vijaya Bank. HDFC bank was a significant gainer amongst the big names. Other major gainers were Lupin, KFA, CESC, Indian Bank, LITL, Syndicate bank, HDFC and Educomp. Metals were on the wrong side of the market as the major losers included stocks like Hindalco, Nalco and Tata Steel. Other names on the losing list were Infosys, LIC, Suzlon and GSPL. Volumes were high while breadth turned positive towards the end of the session. Nifty found support around 4910 and rallied smartly to again edge closer to 5000. September series was a good one for the bulls as Nifty added almost 300 points during this period. Banks had a big series as almost all PSU banks ended the series with huge gains. Momentum continues to be with Banks and now even the other financial stocks are also beginning to look good. Upside is likely in stocks like Federal bank, Karur Vysya Bank, Indusind Bank, Karnataka Bank, India infoline, IDFC. Vijaya Bank and Syndicate bank have given fresh breakout and could move up smartly in coming sessions. KFA is witnessing improved volumes for past few days. It could move towards 61-63 and even to 71-73 if it sustains above 55. CESC has given a fresh breakout and is likely to target 430-435 in coming days. Others that are looking positive technically are HCC, Educomp, Zee, Pantaloon, IDBI (above 118) and McDowell’s. Nifty has immediate support around 4910-15 and then around 4845-55 while it could target 5120-25 above 5030.