Market Outlook 21-10-2009

Market made a new high early in the day but then higher levels attracted selling and pushed the indices lower. ONGC, BHEL, HUL and RIL were the key heavyweights that put pressure on the indices. On the other hand banking and Sugar stocks continued to run northwards. Most of the frontline sugar counters hit new yearly highs with Bajaj Hind leading the pack. Other major gainers were Triveni, Yes Bank, Andhra Bank, Federal Bank, APIL, LIC Hsg, Renuka, SAIL, Jindal SAW and Noida Toll. Breadth turned negative as the day progressed while overall volumes were average. Nifty consolidated above 5100 even as stock specific moves took centrestage. Sugar continues to be momentum sector and is still looking good for more upside. Renuka Sugars and Balram Chini have given fresh breakouts and could push for higher levels. Federal bank has given a strong breakout by closing above 260. It could target 290-95 in coming days. LIC hsg has moved out of consolidation after about 2 weeks and might target 910-925 in coming days. JP Associates too is looking good for 12-15% more upside. Amongst others positive breakouts have been observed in Noida Toll, SAIL, HCL Tech, GE Shipping, Mphasis and Hind Petro. Nifty has support around 5070-80 and then around 5025-30.