DAILY MARKET OUTLOOK : 03/09/2010.

Nifty is facing resistance at 5509. Yesterday a bearish shooting star was formed on both the indices and only a close above 5514, will negate the implications of the bearish pattern formation.

Sensex Resistance 18315-18381-18444. Support 18167-18118-18047.

Nifty Resistance 5509-5531-5553. Support 5471-5456-5431.

Buy BemL 1061 SL 1046 Tgt 1087-1117.

Buy Grasim 2089 SL 2069 Tgt 2123-2162.

Buy BoB 832 SL 823 Tgt 846-862.

Buy Allahabad Bank 217 SL 215 Tgt 221-225.

Buy Axis Bank 1388 SL 1378 Tgt 1402-1419.

Buy Uco Bank 118 SL 117 Tgt 122-126.

Buy Voltas 209 SL 206 Tgt 215-221.

Buy MRF 8065 SL 7975 Tgt 8235-8405.

Last week the bulls heaved a sigh of relief as the Nifty managed a close above 5500 on a weekly basis after a hiatus of more than 2 years. But as is the wont, the market once again started to trade in a small range i.e. after making a high the market moves lower and forms a lower boundary and starts trading between the higher and lower levels. This time after making a fresh high, the Nifty came down but the fall seems slightly more stronger than before and hence the dreaded question on every investor/ traders mind; whether the much awaited correction has started. It is interesting to note that correction has started as soon as FIIs started selling in our market. It just shows how dependent our market is on the FIIs for maintaining higher levels.

HAS THE CORRECTION STARTED?