Market Outlook 06-10-2009

Markets opened with a clear downside bias on negative global cues. Some recovery was seen during the mid-trades but persistent weakness in certain key heavyweights like Bharti kept the indices under pressure. Other telecom majors Rcom, TTML and Idea too suffered losses on persistent selling. Grasim and Ultratech also came under pressure and were major losers of the day. Metal stocks were impacted by the weak global sentiments. Hindalco lost 6% while SAIL lost around 4%. Overall, the sentiments were negative. Certain stocks that managed to buck the overall trend were Jet Airways, KFA, BEL, ITC, DCHL, ZEE and Lupin. Nifty lost about 2% but still managed to close above 5000. 4960-70 is a key immediate support but trend decider in the short term continues to be 4870-4880. Again, it is to be seen whether this turns out to be another one-one and half day correction or turns into something more meaningful. Banks and Metal stocks might come under pressure if the global situation remains tricky. Both Hindalco and SAIL are looking weak and SAIL in particular could struggle if it breaks below 160. ITC, on the other hand is beginning to look good after a long consolidation. It could target 255-258 in coming days. KFA could target 63 and 67 while Voltas might also seek higher levels of 156 and 162 in coming days. Other stocks that could move higher are M&M, United Phosphorous, Reliance Infra, GAIL and JSPL. Nifty has immediate support around 4960-70 and then around 4925-30.