Market Outlook 09-10-2009

RIL bonus issue proved to be a damp squib as markets ignored it completely. Markets opened on a positive note but again failed to hang on to its earlier gains as Nifty closed almost on a flattish note. Nifty again failed to close above 5000. Market is entering earnings season with Infosys coming out with results tomorrow. Market has not reacted much during the past few quarters to its numbers but this time its numbers could have a bearing on the future course of markets, particularly the IT sector. Momentum is seen in infra stocks and it could continue in coming days. JP Associates has given a breakout above 242 and could target 256-258 in coming days. Similarly Punj Lloyd too has closed above 275 after a long time and sustained trades above 275 could take it around 310-15 in coming days. Others that are looking good are Cummins, APIL, HCC( above 135), MLL, Siemens, REC and CESC. Nifty has immediate support around 4925-30 and then around 4870-80 while resistance is likely around 5040-45 and then around 5080.