Market Views for 12 October 2009

Hello Friends,

N i f T i e e Intraday levels :
Close : 4945
Supports : 4919 / 4888 / 4848
Resistances : 4977 / 4994 / 5015

Nifty after making high of yearly high 5111 profit booking was seen at higher session since then. After that Nifty faced resistance around 5080-5090 levels & 2 to 3 attempts were made to cross the same but unable to do it.

At these levels markets are more effected to bad sentiments among the people, the Analyst’s, the Funda Guys & so on. Such sentimental has been seen on Charts as lack of volumes at higher levels & also they need some correction to make markets healthier.

Earnings season have started & as told earlier that there would be revision in EPS, this would make the P/E comfortable for Fundamentalist & they would re-rate the stock/sector from overvalued to fairly valued. After sound results from Infosys & Bonus issue from RIL re-rating has started at desk of Funda guys & so called Analyst’s.

After break down in Telecom stocks due to shifting of calculation of revenues from Per min to Per second pulse, the index have been broken down due to this effect as index based Telecom stocks like Bharti / Idea / Rcom are deeply hammered. Also break down has been seen in auto sector, banking & I.T index, these are heavy weights for Nifty & once all these breaks there are less chance for Nifty to move up.

Nifty have very imp supports around 4888-4909 levels which are recent lows & from where the indices made new highs. Again markets are here to test these levels, so a close eye to be kept on these levels on closing basis then we may see more profit booking & also invites some fresh short positions. This views are only valid if markets close below 4888 with good margin & volumes.

Another view : if markets do not break 4888-4909 levels & bounces back from current levels then it may test higher levels of 4977 / 4994 & fresh buying will only be seen if Nifty closes above 5015.

Provisional Fund Flow Figures Rupees Crores for 09 October 2009

Fii -44
Dii +87
Fii ( derivatives ) -1612
Index Futures -630
Index Options -347
Stock Futures -600
Stock Options -35

News :

· Indiabulls power ipo opens 12 October 2009.

· RIL-RNRL Case update : From the statements we hear from both the parties we see some out of Court settlement as its Family dispute & nothing to do with Shareholders or company. If this happens then we may good move up in both the stocks & change the sentiments in markets.

· Tomorrow Tuesday, 13 October 2009, Trading holiday in markets on a/c of Assembly election in Maharashtra.

· Coming Saturday, 17 October 2009, Muhurat Trading in evening at 6.15 pm.
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Regards,

Allies Financial Services
Mumbai, India
Website : www.AlliesFin.BlogSpot.Com