Daily Market Outlook: 19 May 2009
TRADING HALTED FOR THE DAY
The one-sided win for the UPA government (lead by 262 seats) in the 15th Lok Sabha election, which shrugged off the exit polls results drastically, brought great cheers for the markets in early trade. The benchmark indices locked at upper circuit. The BSE and NSE have decided that the trade will start at 11:55 am (i.e. after two-hour halt).
In the first 30 seconds of trade, the Sensex crossed the 13,000 mark and inched up towards 14,000 level. This was the first time since October 2008 that the Sensex surpassed the 13,000 mark and the Nifty crossed the 4000 level. Huge upsurge of 420 points or 11.4% in the SGX Nifty was suggesting the same trend.
The manner in which the markets jumped gaining 300 points on Friday, was an indication of investors expecting better elections results than previously expected. Saturday’s election results came strongly in favour of the UPA. Many believed UPA’s clean sweep at the polls to be a favourably historic event and the Sensex opened at upper circuit at 13936.30 points up by a whopping 1789.88 points or 15 per cent within few minutes of opening. With the Sensex hitting circuit, the market was halted and was slated to open back at 11.55 am. After opening second time, the Sensex jumped 17.34 percent, or 2,110.79 points, to 14,284.21 points. Trade was finally halted for the day before noon. Even the midcap and the smallcaps too were up by 11.75 and 9.05 per cent respectively.
Support : 4075 / 4000 / 3830
Resistance : 4475 / 4630 / 4650 / 4775
Support : 13500
Resistance : 14450 / 16045
Support : 4120 / 3905
Resisitance : 4485 / 4635
2 upper circuit in a day. Only few minutes of trading. FNO DATA not reliable.
We expect NIFTY FUT to show profit booking at higher levels due to sharp rise.
Buy NIFTY Above 4330,Sl Below 4305,Tgt 4385/4415/4445/4520/4660
Sell NIFTY Below 4300,Sl Above 4325,Tgt 4250/4205/4145/4100/3960
Buy LICHSG Above 425,Sl 420,Tgt 430/35/40
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