>DAILY MARKET & TECHNICAL OUTLOOK (ICICI DIRECT)

Key points
■ Market Outlook — Open with a gap up and trade positive
■ Positive — Election results, oil steady @ $56, funds buying

Market outlook

■ The Indian stock market looks set to surge on Monday on expectations the clear election victory of the ruling coalition would lead to a strong and stable government that would accelerate the pace of economic reform. The rupee is expected to strengthen past 49 per dollar. Bond yields are set to fall as the outcome should encourage foreign investors and sharply lower the risk of instability leading to a ratings downgrade. The circuit filter for the index will be calculated form the closing value of the index of the quarter. For the Sensex the closing value was 9708.

■ The Sensex has supports at 11900 and 11400 resistances at 13050 and 13760. The Nifty has supports at 3600 and 3550 and resistances at 3800 and 3950

■ Asian stocks were trading weak in the early session. However, the Indian markets will not follow Asian cues and will rally on domestic euphoria

■ US stocks were trading lower on Friday. For the day our markets will not follow US cues

■ Stocks in news: Unitech, Tata Motors, Piramal Life Sciences

To see full report: OPENING BELL 180509