Market Outlook 15th October 2010

If Tuesday was fantastic in term of bulls trends Wednesday was fantastic for bear cartel.
With a good opening gap Nifty managed to touch a new 52 week high and this level was last seen only in the first week of January 2008.
But later on it became evident that punters are in a mood of some profit booking after sharp rise of Tuesday and in the late afternoon a real bloodbath was seen among bulls and all were trashed heavily.

Bank Nifty suffered the most among frontline blue chips while IT Index managed to close with decent gains expecting a better result from IT biggie Infosys on Friday.

Small Cap and Mid-caps also saw selling pressure while long build up was seen among Fertilizer and Metal stocks.

In all it was a U-Turn in Index Movement for the past three sessions and most of what was gained on Tuesday after Monday's weakness was again lost on Wednesday.

Well there is still hope for bulls if Nifty do not breach 6177 and manages to stay above that level.
On the higher side if Nifty trades above 6213, then bulls will again take a front seat and upside will be seen.
Last hope for the bulls is at 6149 and breaching this level will result in a lot of profit booking by punters who will lead the index further downwards.

If punters manages to regain 6213 level then they may pump more power into the market that may bring Nifty back to higher levels.
We hope for the best but should also be ready for the worst.



Nifty Pivot 6213
Support 6178-6149
Resistance 6236-6271