Market Technicals for the week ending 18th January by Vikash Agarwal

Indian Markets Technicals

Nifty has become a bit weak whereas Sensex has become a bit strong at these levels. The trend for fresh buying positions will continue if the markets trade beyond 6223 & 20824 . There are chances that Nifty may move 221 - 222 points down & Sensex may move 765 - 766 points up. There are chances of a weekly movement of around 485 points & 1535 points in Nifty & Sensex respectively.

If the markets sustain above 6333 & 21210 levels, then they will try to touch 6467 & 21592 levels.

On the other hand, market has a weak support at 6089 & 20441 because the markets may further fall down to 5978 & 20055 levels from this point due to panic selling & profit booking which can act as a strong support.

Intraday Market Technicals for 16th January

Both Nifty & Sensex has become very weak at these levels. The trend for fresh buying positions will continue if the markets trade beyond 6129 & 20442 . There are chances that Nifty & Sensex may open 55 - 56 points up & 191 - 192 points up. There are chances of an intraday movement of around 260 points & 860 points in Nifty & Sensex respectively.

If the markets sustain above 6205 & 20681 levels, then they will try to touch 6336 & 21111 levels.

On the other hand, market has a weak support at 5998 & 20012 because the markets may further fall down to 5922 & 19773 levels from this point due to panic selling & profit booking which can act as a strong support.

Derivatives Calls

Futures

Buy Nifty Jan.' 08 Futures above 6123.65 levels with a target of 6314.10 & with a stoploss/ average below 6028.42.

Buy Educomp Jan.' 08 Futures at current levels with a target of 5602.05 & with a stoploss/ average below 4648.30.

Options

Buy IFCI 90 CA Jan.' 08 at current levels with a target of 5.15 & with a strict stoploss below 0.45.

Buy IFCI 80 PA Jan.' 08 at current levels with a target of 4.75.

Long Term Delivery Calls

We strongly recommend a buy on M&M at current levels with a target of 1268.90.

We strongly recommend a buy on MRPL at current levels with a target of 221.50.

Medium Term Delivery Calls

Buy City Union Bank at current levels with a medium-term target of 596.15 & with a stoploss/ average below 371.90 .

Short Term Delivery Calls

Buy Idea Cellular at current levels with a short-term target of 160.15 & with a stoploss/ average below 140.60.

It will be my pleasure to build a strong relationship with you.

I look forward for your response & suggestions regarding my research.

Vikash Agarwal