Equity market outlook: If Nifty Jan fut breach support level, next one at 5980, Tata Power, Idea Cellular eyed

Posted online: Friday, Jan 10, 2014 at 0000 hrs
Bear's continued to rule the equity market this week too, with NSE Nifty going onward with its previous week's fall and tested support level of 6140.

Nifty Jan fut was bearish throughout the weekly session, on the last day of the week slight recovery was seen which vanished towards the session end and Nifty Jan Fut closed in red at 6180.

Indian rupee was  trading at  62.05 mark against the US dollar and that too fueled  the bear party. 30 share index  BSE Sensex closed at 20751

Technically overall trend of Nifty Jan Fut is up but has recently breached its rising trendline and is very well sustaining below that indicating  slight reversal. Thus, if Nifty Jan fut manages to breach its nearby  support  level of 6140, further downward rally can be seen that can take Nifty fut to 6040 mark and next support level to watch is 5980. On upside major resistance level to watch is 6300 crossing of this level can take nifty to 6400 mark

Stocks to watch on:

TATAPOWER FUT: Technically stock is  looking weak on chart, it is sustaining on its rising trendline if it manages to breach its trendline steep fall can be expected. Thus one can go for sell position in Tatapower fut below the level of  79.60 for tgts of  76.

Quote: Tata Power

IDEA FUT: overall trend of the stock is strong, Technically stock is moving in a slanting pattern thus upside breakout can be expected, moreover it is sustaining above its 50 days moving average. One can take long position in IDEA fut above 164.35 for tgts of 168.

Quote: Idea Cellular Ltd

By Vivek Gupta, Director Research, CapitalVia Global Research Limited

NOTE: The views expressed are those of the author