NIFTY DAILY OUTLOOK SEPT 22, 2010

On Tuesday, market opened gap-up and remain volatile thru out the day. Both Nifty and Sensex manage to cross 6000 and 20000 level, closing above the same for the first time since January 2008. Banking sector remain under profit booking. IT and Pharma attracted huge buying. Market breadth was negative and profit booking was seen at higher levels. Midcap & Smallcap index closed in red.

For the day, the level of 5990 and 5960 may act as a major support
for the market and the level of 6020 and 6045 may act as a major hurdle. Mostly all technical indicators are in an overbought zone so one needs to be cautious at higher levels.

The short term trend will turn negative below the level of 5760.

Day trader can go long on nifty above 6020 with stop loss 6000 for
target 6045 / 6060 and can go short below 5985 with stop loss 6005
for target 5960 / 5945.

INDEX RANGE

NIFTY: 6009.05
Range: 5960-6045
Resistance: 6020-6045-6060
Support: 5990-5960-5945

BANK NIFTY: 12245

Range: 12080-12415
Resistance: 12305-12360-12415
Support: 12190-12140-12080

Short term: Up (5760)

Medium term: UP (5530)
Long term: Up (5180)

All Above Spot Levels

OM SHRI GANESHAYA NAMAH