INDECISION.

Nifty opened with a positive bias and made a high of 5392,  but could not retain the early gains and made a low of 5315, before closing at 5359 marginally up by 19 points. The entire session was a lackluster one, with 725 advances to 763 declines , while FIIs were net buyers to the tune of  578 crores, the DIIs were net sellers to the tune of 71 crores.On the futures side, Nifty futures closed at 5391, with a 32 points premium to the spot and a moderate loss in open interest. On the options side, 5500 Call added the maximum open interest, followed by the 5100 and 5600 calls and on the put side 5100 put added the maximum open interest followed by the 5300 put , while most in- the money puts shed open interest. All this indicates a certain level of uncertainty in the market, before the big election results next week. The technical indicators show indecision period in the market, but the key levels to watch out for Nifty, in the coming week will be 5395 and 5432 on the upside and 5309, 5278 and 5254 on the downside. On the international front , there was good news from the U.S. with the payroll estimates expected to be highest in the month of January, since last April, further increasing consumer spending and there was also some relief in the form of softening in the international crude prices.

Stock Picks

LT - Buy 1300 SL 1273. TGT - 1327, 1342, 1375

HERO MOTOCORP -  Buy 1931 SL 1911. TGT - 1968, 1982