Market Outlook Dec 20 2010

Market Outlook - Bullish

Nifty Spot Closed - 5949
Supports -5850-5770-5690
Resistances -5980-6070-6180

Strong Above 5915 & Weak Below 5835 Spot Closing
Initiate long positions above 6065 levels
initiate short positions below 5835 levels

Concerns over the regulatory crackdown on operators indulging in stock price manipulation, fallout of 2G spectrum scam and renewed selling from FIIs pulled down the markets during the week ended.However there was positive buying noticed on the news RBI polciy not touching any rate hikes.
Last Week Nifty seems to have made double bottom around 5750-5690 and closed at 5944, If Holds it will move towards 5930-70 and then 6050-90. Nifty Made high at 5956.
For this Week, Nifty has Important resistance around 6065 & Crucial Support around 5870-30. As of now, this is pullback rally from Support 5690-5750 till 6070 with resistence 5960. Till the Nifty Spot Holds 5830 on closing basis, Its Buy on Decline for Upside 6070. Closing Above 6070 will break this range of 5700-6070 & will move towards 6180-6240+. Closing below 5830 will make bearish TGT. Hence, Time to Hold Longs with SL 5830 Spot Closing.

Medium Term Crucial Support @ 5535 & Resistance @ 6357 on Closing Basis.

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EU Cues :
An agreement by European Union leaders to set up a permanent mechanism from mid-2013 did nothing to assuage those fears. Investors were hoping for more aggressive solutions to address the region's fiscal crisis, such as increasing the European Financial Stability Facility or issuing joint European sovereign bonds.

US Cues :
US market ended flat on friday,States, there is a slew of data due this week , all of which is expected to show the world's largest economy is growing, albeit at a modest pace.
CIBC World Markets has recently upgraded its fourth-quarter U.S. growth forecast to 3 percent, with the downbeat November non-farm payrolls data looking increasingly like an outlier amid other positive signals.
Two economic indicators for November, durable goods orders and personal income/consumption, will help guide forecasts for fourth-quarter growth, with more positive news likely on the consumer side.

Asian Cues:
North Korean official news agency KCNA issued the threat as South Korea prepared for firing drills on Yeonpyeong island near a disputed maritime border with the North for the first time since November's exchange of artillery fire.

Though the outlook of Nifty from charts seems to be on bullish however we advice cautions based on the weak to negative

cues from world market. US and european market is expected to trade on low volumes due to the holiday season and Negative

news from korea can create a short term downfall in the indian market

Performance Update for Dec 20 2010:
Tcs - Buy @1110 Target 1146/1175 SL 1108 CMP 1167 PRofit - 53 Rs
Tata Steel- Buy @657 Target 675 SL 653 CMP 671 Profit - 14 Rs
ACC - Buy @1076 Target 1089 SL 1071 CMP 1097 Profit - 21 Rs
Sail - Buy @186 Target 196 237 Stop Loss 182 High 191 Profit - 5 Rs

Total Profit for the Day 138 Rs
For TCS/TataSteel/ACC both Target1 and Target 2 achived Book 50% profit

10 %, 20%,30%,40%,50%,60%,70%,80%,90% is done..Our target 100% .
Happy Investing
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