Market outlook for October,2012

October 4, 2012   ·   0 Comments


Trading strategy for the Week:


During yesterday’s session, the Nifty has managed to cross the stiff resistance level of 5741, but eventually closed marginally below it.  At this juncture, we  do not see any reversal sign or possibility of weakness in the market.


However, keeping in mind, the overbought position of momentum oscillators, traders should try to keep on trailing their stop losses to safeguard their profits on remaining positions. Also, we are seeing that Nifty future premium has risen from 25 points to 37 points.  In a rising market, this indicates an increase in fresh long positions. Going forward, if indices manage to sustain above 19132 / 5743, then they are likely to move towards their next targets of 19542  – 19812 / 5850  – 5945 and even the possibility of testing 6000 (Nifty) cannot be ruled out. The key support for the market is seen at 18552 / 5638 level.


Nifty levels for the month of October:


On options front 5800-6000 call option has seen significant amount of buildup in open interest, while in put option 5600-5700 strike price has seen maximum buildup followed by some unwinding in 5200-5300 put option in yesterday’s trading session.


We may continue to go higher as right now, bears are not sure where they want to end this rally and are not very active. FDI in pension and insurance sector could be another booster for the markets. People who are long from the 4700-5000 longs can continue to hold their longs.


Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

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