Market Outlook 13/10/08

Market closing positive as expected

It was huge gap up opening today and momentum was maintained till the end.This relief rally was clearly mentioned here today.The Banking, capital goods, realty, power, telecom, technology and metal stocks led today's huge rally.Nifty closed at 3490, up 210 points from the previous close.All sectoral indices were in the positive today.Central banks and governments globally are giving first preference to credit crisis and are trying to solve liquidity problems.United Kingdom, announced the government extending a GBP 37-billion (USD 64 billion) lifeline to UK banks.European markets were trading smartly on hopes that these credit crisis problems will get resolved soon.Asian markets also recovered sharply in late trade.The market breadth was positive with advances at 966 against declines of 323 on the NSE. Top Nifty gainers included Reliance Communications, ICICI Bank and Reliance Infrastructure while losers included Ranbaxy and Sun Pharma.It will be interesting to see market moves henceforth as it is almost near to big resistance of 4550-4600 and if doesn't cross this level, it will start sliding again.

Following calls were given in yahoo messenger for clients:

It was a huge profit day for all my clients today

Short Nifty Futures around 3465 with stop loss 3485 and it made 3448....GOOD PROFIT

Buy Nifty Futures above 3485 for target 3500-3520 and it made 3556....GOOD PROFIT

Buy Reliance Capital around 809 with stop loss 804 for target 840-860 and it made 816 and then hit the small stop loss

Short Bank of India around 275 with stop loss 279 for target 265 and it made 268....GOOD PROFIT

Buy Suzlon around 98 with stop loss 97.5 for target 103-106 and it made 109.8....HUGE PROFIT

Buy Kotak Bank around 458 with stop loss 452 for target 475 and it made 480....HUGE PROFIT

Buy Reliance Infra around 548 with stop loss 542 for target 570 -582-600 and it made 613....HUGE PROFIT

Short DLF at 294 with stop loss 296.5 and it made just 291.8 and then hit the stop loss

Buy Reliance Capital around 818 with stop loss 813 and it hit the stop loss

Market Outlook 13/10/08

Market may just start showing relief rally now

It was a scary fall in indian market last week and the begining of this week may show some relief rally though global cues are still negative.The Dow lost 128 points, giving the blue chips an eight-day loss of just under 2,400, or 22.1 percent. On Friday, the Dow was down 468 points at 3 but rocketed 790 points and was up 322 points just after 3:30. It then sold off but closed down only 128.The Dow Jones industrial closed at 8,451.49-128 points down from the previous close.Most major central banks around the world slashed interest rates this week after continuing problems in the credit market triggered concerns that banks will run out of money.Meanwhile the US government has decided to buy stake in banks, first time since Depression.The purchase of stakes in companies would be in addition to the main thrust of the $700 billion rescue effort, which is to buy bad mortgages and other distressed assets from financial institutions.Moreover the Finance officials from the world's top economic powers endorsed a plan Friday to stem the worst financial crisis in more than a half-century.On Friday, the Reserve Bank of India (RBI) said it would make a deeper-than-expected 150 basis point cut in cash reserve requirements on Saturday, to release 600 billion rupees ($12.4 billion) into the system.The stock market may take some positives on these news now.For today, even if there is gap down opening buying wil come from lower levels and nifty above 3340 will face resistance at 3400 and on downside below 3250 might go till 3220-3200.Watch out for volatile day of trading again.

Stock watch for the day:

Today's calls only for clients