Vol.14.

404

19th Dec 2011

MARKET COMMENTARY
It was another terrible week for the markets as indices tumbled around 5% for the week. Things never looked good throughout the week but Friday turned out to be worst as Nifty went into a tailspin in the last 60 minutes of trade. RBI left everything unchanged disappointing the market men and then some rumors about tainted money at bourses further worsened the sentiments. All these factors combined to accentuate the already bearish environment. Both Nifty and Sensex ended the week on a 25 months low. There wasnt any safe sector as all sectors lost ground. Rupee was another bearish factor as it made historic low against dollar on Thursday before recovering some lost ground on RBIs intervention. Globally things were not as bad but were not positive either as credit rating agencies lowered ratings of some Euro nations.

Nifty ended the week below 4650 and has opened up further lower targets. Some support is seen around 4550-4575 in weekly charts but the overall structure suggests that we could be headed to around 4400-4425 in short term. The broader structure is weaker as Nifty has broken below 4700 after finding support around this level for 4 times in past few months. Technical rebound , if any could find it difficult to move past 4750 and 4825-40. Most heavyweights are on weak ground with only a few like HUL, Infy and TCS still trading above 200 dmas. Even ITC seems to be losing momentum and could slip to around 185. Overall, things remain weak and only an oversold technical structure provides some possibility of a rebound. But as things stand today rebound, if any would be short lived. Its still a prudent strategy to stay away from any sort of bargain hunting. Nifty has immediate support around 4550-75 while resistance is seen around 4720-45.

Place your stops at a point that, if reached, will reasonably indicate that the trade is wrong, not at a point determined primarily by the maximum dollar amount you are willing to lose.

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EQUI QUICKPICK
LOW RISK / LOW RETURN NOTE : IN CASES WHERE CASH LEVELS ARE GIVEN, BUY/SELL FUTURES WHEN THE CASH PRICE CROSSES THE BUY ABOVE/SELL BELOW LEVEL IN CASH SCRIP RELIANCE CAP FUT RELIANCE INFRA FUT STRATEGY
SELL BELOW Rs.242 BUY ABOVE Rs.342

S. LOSS
254 356

TARGET
225/210/200 329/310/300

HOLD PERIOD
3-4 DAYS 3-4 DAYS

INDEX LEVELS
NIFTY FUT BANKNIFTY CNXIT LTP 4643 8139 6101 S1 4609 8080 6075 S2 4568 7990 6045 S3 4530 7915 6010 R1 4678 8235 6135 R2 4715 8320 6180 R3 4751 8445 6225 STRATEGY Trade both sides Trade both sides Trade both sides

NOTE: ALL LEVELS ARE FOR DEC SERIES.

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Disclaimer: The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. Readers using the information contained herein are solely responsible for their actions. The information and views contained herein are believed to be reliable but no responsibility or liability is accepted for errors of fact or opinion. Editors may or may not have trading or investment positions in the securities mentioned herein.

Website: - www.equitystrategists.com EQUITY STRATEGISTS is published by Available through Subscription Only D Prasad & Jatinder Sharma A 1, Sector - 53 (9810018028) (9910694444) Noida 201 301 contactus@equitystrategists.com PDF Created with deskPDF PDF Writer - Trial :: http://www.docudesk.com