Markets For 12/05/2009

Daily Market Outlook: 12 May 2009

Inline with other Asian equity markets, Indian markets also started the day on the positive note but afterwards as the other Asian markets declined from the day’s high Sensex also witnessed it only directive and that was southward. While the Sensex closed at 11682.99 (Down 193.44 points) Nifty closed at 3554.60(Down 66.10 points). While the decline in Asian markets towards the fag end of their closing resulted in some decline in Indian markets, the weak opening of European market made it sure that it will not bounce back. On the sectoral front, all the indices closed in red. Market breadth was negative with 1573 declines and only 919 advances. Tomorrow we expect the market to open on a flat note.

NIFTY (3554.6)

Resistance : 3590 / 3630 / 3655 / 3710 / 3755

Support : 3515 / 3490 / 3450 / 3375

SENSEX

Resistance : 11905-35 / 12050 / 12185

Support : 11525-05 / 11370-55

NIFTY FUT (3552)

Resistance : 3600 / 3630 / 3665 / 3700

Support : 3505 / 3475 / 3455 / 3425

MKT COMMENTS

NIFTY FUT OI flat with 20% decreasing volumes indicating unwinding of long positions plus forming of short positions for STBT.

We expect NIFTY FUT to trade negative.

On Tuesday,Opening is Flat to Down,

Stay Short Below 3570,Sl Abv 3585,Tgt 3540-3505-3455-3440,

Sustain Above 3590,Buy with Sl Below 3575,Tgt 3630-3645-3685-3710.

BANKNIFTY

Sell Below 5285,Sl Abv 5330,Tgt 5235-5150

Buy Abv 5430,Sl Blw 5385,Tgt 5510-5555

BUY

EDELWEISS Above 335

PETRONET Above 55

NTPC Above 185,Tgt 189/93/95/99

BOI Above 238,Tgt 241/45,Sl 235

HPCL Above 250,Tgt 255/60/65,Sl 245

ITCAbove 190,Tgt 193/95/98,Sl 185

SELL

BIOCON Below 150,Tgt 145/40/35+,Sl 155

GRASIM Below 1725,Tgt 1705/1690/70/55/40++,Sl 1745

HINDALCO Below 66,Tgt 65/62/58,Sl 70

BHARTISHIP Below 101,Tgt 96/94,Sl 104

CROMPTON Below 160,Tgt 158/56/54,Sl 163

SBIN (1258),Tgt 1210/1190,Sl 1285

FUTURES

Buy BAJAJHIND@ 109,Sl 107,Tgt 113/13.8/14.9/16/17/18.2/19 (Lot Size : 5700)

Sell SBIN@ 1260,Sl 1275,Tgt 1247/40/30/20/10+++ (Lot Size : 264)

Sell BHARTI(767.4)@ 773/78,Sl 787,Tgt 757/49/43/39

Sell LNT(991)@1010/1000,Sl 1025,Tgt 985/75/65

BHEL(1648)

Sell@ 1670/65,Sl 1695,Tgt 1645/30+

Buy@ 1615/20,Sl 1595,Tgt 1650/60

World Markets - Astrologically

Crude Oil / Gold / Silver
As far as Crude Oil is concerned, In December 2008, we had forecasted that Crude is heading for US$65/- per barrel in a multi week rally. We advised long term investors to take Long position on every decline @ US$36 - US$40 per barrel. As far as weekly movement is concerned, minor corrective decline is expected on Monday (11th May) but again Crude Oil will bounce back. Gold may open higher on Monday followed by Profit booking till 14th May. Silver is looking positive on 12th and 15th May while profit bookimng may be seen on 14th May. Both Gold and Silver are in favout of rise till 18th-19th May 2009.

US Dollar/ Indian Rupee ( USDINR)
Astrologically, as far as Indian Rupee - US Dollor is concerned, Indian Rupee is looking weak in May and early June with occasional rallies. During current week, INR may show some strength between 12th and 14th May but US $ will regain strength after 15th May.

US Markets
Astrologically, Both DJI and Nasdaq are preparing for corrective decline during the Month of May 2009. During this week, Market likely to upward U-turn on 12th May and likely to decline in later part of 14th May 2009. Both Naswdaq and DJI are also expected to recover on 15th May 2009.