PRE-OPEN MARKET OUTLOOK(14-07-2009)

I SHALL REPRODUCE FIRST MY FUTURE OUTLOOK OF YESTERDAY POST CLOSING REPORT BECAUSE I TOLD AT 09:23 PM YESTERDAY ALMOST ALL THAT WHICH WILL HAPPEN TODAY :-

FUTURE OUTLOOK:- INDIAN MARKETS GOT GOOD SUPPORT AT LOWER LEVELS TODAY THEREFORE AN UPMOVE IS CONFIRM TOMORROW. IT IS EXPECTED THAT NIFTY WILL OPEN ABOVE 4000 AND WILL TEST 4050 TOMORROW BUT STRONG RESISTANCE RANGE IS 4070-4135. A SMALL UPMOVE WILL BE SEEN TOMORROW BUT FIRST CONFIRMATION OF SUSTAINED UPMOVE WILL COME IF NIFTY WILL CROSS BY FORCE 4135 OR SUSTAIN ABOVE IT. AS I WAS EXPECTING AN UPMOVE TOMORROW THEREFORE I POSTED NIFTY F&O BUYING CALL IN FUTURE AND OPTION CALLS THREAD IN THE LAST MINUTES. I POSTED IN LAST MINUTES BECAUSE I ALWAYS AVOID EXCESSIVE VOLUMES ON MY CALLS BECAUSE THAT WILL PROOVE HAZARDOUS FOR THEM WHO TRADE BLINDLY ON MY CALLS.

I TOLD AGAIN AND AGAIN FOR TESTING OF 3930 AND NIFTY TESTED 3930 AS WELL AS REVERSED AFTER MAKING BOTTOM A LITTLE BELOW AT 3918.75. AS LONG TERM TREND IS UP AND INDIAN MARKETS COMPLETED ONE PHASE OF CORRECTION(I DESCRIBED IT LAST 2 DAYS). IF FOLLOW UP BUYING AND CONSOLODATION DEVELOPS AND NIFTY CROSS AS WELL AS SUSTAIN ABOVE 4135 THEN IT WILL GIVE CONFIRMATION COMPLETION OF CORRECTION AND IN THAT SITUATION STRONG RALLY WILL BE SEEN IN INDIAN MARKETS.

GREEN CLOSING WILL BE SEEN AFTER GAP UP OPENING TODAY.


(LALIT KUMAR DHINGRA)