Market Outlook 29-10-2009

It was a volatile day for the markets as Nifty struggled to sustain above 4800. It slipped below 4800 during the day but late recovery in some heavyweights helped it to claw its way back above 4800. Undertone remained bearish as declining stocks remained in majority. On the positive side, certain stocks did manage to hold their ground and found good amount of buying. This list includes Crompton greaves that came out with encouraging numbers, Balrampur Chini, PTC and Patni. Sesa Goa edged higher on short covering, as did somebanking counters like Syndicate Bank, OBC, Allahabad Bank, BOB and Union Bank. Wipro continued to find buyers as it made a new high. Other gainers were JSPL, Aban, Bajaj Hind, Sun TV, Ranbaxy, HCC and HDIL. EKC was a big loser amongst the F&O stocks as it plunged by over 16%. Other major losers were Lupin, TV18, Educomp, Rolta, BEML, MLL, Maruti, Tata steel and Suzlon. Nifty managed to stay above 4800 but continues to look vulnerable. Short covering helped in ustaining certain counters, particularly the realty and Banking counters but the rebound was not convincing. Some more recovery cannot be ruled out but Nifty would face resistance around 4880 and then 4930. PTC is showing momentum and could target 115-117 in coming days. More upside is also likely in Cipla, Patni, CESC, Ranbaxy (above 386), JSPL and Bajaj Hind. Tata Steel is placed just around the trendline support around 485 and failure to sustain above this level could impart more weakness. Nifty faces resistance around 4880-85 and then around 4925-30 while support is seen around 4750.