Market Outlook for December 11, 2012 - Microsec

NIFTY (5908.90, UP 1.50)

Yesterday we have seen a range bound and choppy movement of Indian equities. At the end of day it closed at 5908.90. It had a net gain of 1.50 points or 0.03% over the previous day's close. On the sectoral front, some buying interest was witnessed in Realty, Health care, Banking, PSU and Oil & gas stocks. However, IT, Oil & gas, Capital goods and Consumer durable stocks traded marginally lower.

After making a low of 5548.25 on 20th September, the Nifty has given a strong pullback rally of almost 7.25% in last three weeks. Now Nifty is expected to face a stiff resistance in 5950-6030 band. If Nifty is able to maintain above 6030, it may test 6180 in the extreme short term. However a breach of 5810 would indicate the end of current rally and in that case Nifty may test 5540 in the short term. We recommend holding long positions with stop loss of 5810.

On an intra-day basis Nifty has a support at 5900 and is likely to face a stiff resistance near 5950. If Nifty breaks 5900, it may further go down to 5870 and then 5840.However, if it is able to sustain above 5950, the level of 5980 - 6010 would become the next target.

Source : Equity Bulls

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