NIFTY DAILY OUTLOOK OCT 11, 2010

On Friday, market opened positive but with selling across all the indices market remain under selling pressure and volatile thru out the day. Near last half-hour of closing session sharp pull back came in from the day lows which helped market to recover. Volume for the day was quite low. Market breadth was negative. Midcap and Smallcaps index closed in red.

For the day, the level of 6070 and 6045 may act as a major support for the market and the level of 6130 and 6155 may act as a major hurdle. Mostly all technical indicators are in an overbought zone with negative divergence and macd on sell signal so one needs to remain cautious at higher levels.

The short term trend will turn negative below the level of 5945.

Positional trader can hold nifty short position with stop loss 6225 closing basis for target 5990-5970 & 5925-5885.

No trading call for the day.

INDEX RANGE

NIFTY: 6103.45

Range: 6045-6155
Resistance: 6130-6155-6180
Support: 6070-6045-6020

BANK NIFTY: 12473.40
Range: 12310-12620
Resistance: 12510-12565-12620
Support: 12420-12365-12310

Short term: Up (5945)
Medium term: UP (5760)
Long term: Up (5180)

All Above Spot Levels

OM SHRI GANESHAYA NAMAH