15th December 2009 Good Morning, Market Synopsis: 15th December 2009. Market Direction: The call taken today is solely based on the Fibonacci projection in time and price. Majority of the other studies are not confirming the up move that has been projected. Market direction projected is Neutral - Up. Keep a lookout for the level of 5131.00 on Nifty as this is the breakout level. This breakout will be confirmed when the points on Nifty surpass the level of 5161 which is the confirmation level of the said breakout. A close above 5161 will ensure that the Bulls have an upper hand in the next trading session. If this scenario does not work out and the Nifty starts to move below 5090, the target price of 5057 – 5064 can not be ruled out. The call made today is contrarian in nature. A move above 5131 will be bullish for the day as long as Nifty stays above this level. On crossing of the level 5161 the target price of 5182 – 5186 can be achieved. On the negative side if Nifty does begin to trade lower and touches the target price of 5050 on the lower side, see how the market behaves at this point and if strength is seen, cut your short term short positions as an up move is envisaged. For the markets to go down to the level of 5050 will only be possible if 5085 is taken out on the intraday trade. If the Fibonacci projections come true, then expect the markets to move up and then come down only to breakout in the near term. The projections given today are professional in nature and it is suggested that only the traders who are well versed with the market dynamics trade this call. These levels will be the point of reference that will guide you through the day. If 5070 is taken out on the lower end on closing basis, expect the markets to achieve a target of 4960 – 4990 in the lower range. Similarly on the higher side if 5185 is taken out, expect the markets to touch a level of 5250 – 5300. Anything is possible as there are contradictory signals. Also the cycle turning date falls between the 14th and 16th of December 2009. It is during the time of Cycle change that one has to be on the right side of the market as the movement in either direction would be fast and furious. Be extremely prompt when executing your trades as you would not like to be caught on the wrong foot. Players Strength: Technical studies suggest that bears are in charge for the day but the put call ratio points towards the bulls being in charge but this can change, as majority of the calls are written in the range of 5300 - 5350. As the market is looking for a direction the market players are in a state of equilibrium as of now. Today could be the day that decides who will come out trumps in the short term. Action: Be long in the market for the day after the Nifty crosses the level of 5128 – 5131 as this is the breakout level for the day. If Nifty begins to move above 5161, this breakout can be considered as confirmed. Take positions only if you have dependable information. It won't be long before a clear trend would be visible. For today if Nifty trades below 5085 use shorts to play the market. Short Term Opinion: Trading would be in a range between 5038 – 5185. There is still a move left which will take the markets up, before this up move terminates. But this will be discussed when the time is appropriate. In case 5038 is taken out expect Markets to move down to the levels of 4960 – 4990. Stocks: Gujrat Nre Coke, Siemens and Wipro have been recommended for trading purpose. Check the Market Strategy section for details. Wishing you a great trading day. With Regards, Ranjit. PS: The other sections in this letter are not provided as what has to be done is already mentioned in the Market synopsis. The sole reason these sections were not provided is because the call today is contrarian in nature. The caveat here is that please use this if you are an experienced trader. Remember that the contrarian calls are fraught with risk to your capital. | 
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