NIFTY HAS BROKEN-OUT UPSIDE

Nifty has closed above its strong resistance level on Wednesday in a special session of Muhurt trading. Thursday was the holyday of Indian markets while U.S. and European markets gained almost 3% - 5% after the bailout package has been announced of around $1.4 trillion by the private bonds holders of Greek debit and recapitalizes European banks. Euro jumps a huge one day gain after March 2009. Asian markets are also gaining in early morning .Singapore Nifty is trading at 5447 level around 206 points up closing of Indian market .Nifty has 200-day moving average on 5410 level in daily charts. Closing above the 5410 level will sustain uptrend in Nifty. Auto and IT sectors may outperform in this rally. Profit booking may come on higher levels. Avoid short sell in Nifty now.

NIFTY MAY BREAK 5200 LEVEL IN NOVEMBER SERIES

It is expiry of Nifty future and option for October series today. Heavy call writing in 5200’s strike rate marked a strong resistance level for Nifty. Nifty could not breach this level in entire series. A range shifting from 5200 level to 5400 level has seen in November series as Nifty option data shows. Ahead of the European announcement, Asian markets climbed sharply on Monday. After the gap-up opening Nifty has faced resistance 5150 level again and closed 5098 level near day’s low. New shorts have been added in 5200 strike rate’s call in Nifty options. Profit booking is seen in 5100 strike rate’s call. Nifty may expire between 5100 to 5200 levels on Tuesday. Wall Street added heavy gains second day in a row. Asian markets trading mix today. Singapore Nifty is trading flat and high volatility is expected today. Nifty may buy above 5200 level for the target of 5350 level. 

NIFTY MAY OPEN WITH GAP-UP

Nifty was volatile in Friday’s session and it was facing resistance at 5100 level. After the whole choppier session Nifty had closed at 5049 level near the day’s low. A strong opening of U.S. markets European markets climbed at evening. U.S. markets closed 2.31% up with one day biggest gain after October 2010.Asian markets trading up after the European leaders tried to assure market’s participants. SGX Nifty trading at 5100 level which is a resistance level and Nifty cannot breach 5100 – 5150 level without any huge positive trigger. U.S. can be another downgraded by moody or lynch. Bank nifty is also following the index and facing resistance 9850 levels. Nifty may take direction after opening the European markets. Nifty may volatile due to expiry in this week. Auto stocks may participate in the rally from this level. Buy only selected stocks with strict stop-loss.

COPPER OUTLOOK

After the sharp falling from Rs 429 Copper has touched Rs 332, which is its swing low. Copper has slower demand in international markets due to global uncertainty. Copper is showing a downtrend in daily charts and has a strong resistance at Rs 374 -380 levels. In weekly charts Copper is trading near 200-day moving average, which is making a support zone for Copper. If Copper breached $ 2.99 level at Comex then Copper may fall more at $2.45 level. In Indian market Copper has strong support at Rs. 330-326 levels. Copper may touch Rs. 300 if Copper breaches Rs 326 on Mcx. Copper may remain range bound between Rs. 332 to 375 levels. Only short sell is advised in Copper at higher level with the strict stop-loss of Rs. 380.

5100 LEVEL BECOMES A STRONG RESISTANCE FOR NIFTY

Nifty was facing resistance at 5150 level so far. Amid the European debit crises markets are choppier. Nifty is in the range of 5000 to 5150 from last couple of trading days. So many gaps are occurred near 5100 level in hourly chart of Nifty, which means Nifty has made a strong resistance area around 5100 to 5100 for it. There are not any strong triggers from International markets to lift Nifty upside and breach 5150 level in few days. U.S. markets were trading mix on Thursday night while Asian markets are flat. 5100 and 52000 strike rate’s calls have added more shorts in Nifty option. Momentum indicators are on its support but negative crossover in simple moving average lines mark weakness in Nifty. Avoid buying in Nifty at this level. Trade only selected stocks at this level. 

HERO MOTOCORP BUY ON DIPS

Hero Motocorp has reported net profit of Rs 604 Cr better than expectations in September quarter in 2011 while Rs 506 Cr was in same quarter last year. A 19.4% year t o year profit growth was posted by company and sales jumped 28% to Rs 5784 Cr from Rs 4511 Cr. Expenses of the company rose 29.6% to Rs 5190 Cr from Rs 4005 Cr because of depreciation increased 361% to  Rs 280 Cr from Rs 60.7 Cr during the same period last year. Hero Motocorp may outperform in FY 12. Stock has support on Rs 1930 level, currently stock is trading below 50 days moving average. Stock can buy for long –term. Target for the stock is Rs 2500 in 6 to 7 months.

NIFTY MAY REMAIN WEAK DUE TO GLOBLE WORRYS

European markets dropped after the little hope to fix the debit crises on Monday. Indian markets were consolidating amid the news but U.S. markets sank sharply after opening. Banks stocks are the big decliners in European markets. China showed Gross Domestic Product data 9.1% in third quarter, lower from expectations. Dow has fallen around 2% last night. Asian markets trading lower now. SGX Nifty wiped off 42 points and trading around 5080 levels. 5100 and 5200 strike rate’s call added more shorts in Nifty options on Monday, Which marks Nifty may remain weak for few days. Nifty has crucial support on 5050; decline below this level Nifty may cut off more 100 points. Nifty can be short sell below 5050 levels with strict stop-loss.