NIFTY DAILY OUTLOOK OCT 7, 2010

On Wednesday, market opened gap-up and was under selling pressure. Market remains highly volatile thru out the day and during last hour of trading session market recovered from the lows. Oil & Gas, Metal and Auto remain positive whereas FMCG & Banking remain under profit booking. Volume for the day was low. Market breadth was positive. Midcap and Smallcaps index closed in green.

For the day, the level of 6170 and 6045 may act as a major support for the market and the level of 6205 and 6230 may act as a major hurdle.

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

Day trader can go long on nifty above 6205 with stop loss 6185 for target 6230 / 6245 and can go short below 6170 with stop loss 6190 for target 6045 / 6030

Positional trader can go short on nifty below 6120 (closing required) with stop loss 6225 (closing basis) for target 5990-5970 & 5925-5885

INDEX RANGE

NIFTY: 6186.45
Range: 6045-6230
Resistance: 6205-6230-6245
Support: 6170-6045-6030

BANK NIFTY: 12629.20

Range: 12460-12790
Resistance: 12690-12745-12790
Support: 12570-12510-12460

Short term: Up (5945)

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

All Above Spot Levels

OM SHRI GANESHAYA NAMAH