Market outlook for 03/11/09

On the first day of new settlement series nifty opened gap up and from there drifted downward. At mid day this drift aggravated and finally lost all ground to close at 4712. US markets also lost ground hugely on Friday's trade but gain some (but not strong) on Monday's trade.

• Asian markets are negative to flat.
• FII data net buying in stocks futures, index futures, and cash.
• F&O nifty future added 4.2 lakhs with discount in futures.
• Option writing shows more calls OI addition at 4900, 4800, 4700, 4600 too and put addition at 4600, 4500, 4400 puts. SGX nifty at present negative.
• Technical indicators are all in over sold zone.
• 10 days of continuous fall and may bounce at any time (Dead cat bounce).
• Nifty support levels 4580-4350.
• Resistance 4800-4880. Today's pivot is 4750.

Over all view: As the markets are falling for the last 10 days we may expect bounce at any time. Also as per FII data in F&O first time more buying in index/stocks futures this may be first sign of support to markets but it should be analysed with one more day's data. Today trade with reference to 5 day chart and with pivot point of 4750. Any bounce is expected up to 4880 only. Even Monday's trading of US markets is not referring strength. Hence, overall view of world markets is negative. But, wait for a bounce to short the market once again for a target of 4350-3950 to the end of November/first week of December.

NIFTY Technical
Current Spot: 4711.70
Pivot: 4750.95
3DEMA: 4762
7DEMA: 4849
50DEMA: 4886
RSI (14 days): 31.11
Supports: 4648 - 4585
Resistance: 4814 – 4917

Target Nifty
Buy Bank Nifty above 8530 - 8583 - 8630 - 8700 SL - 8470
Sell Bank Nifty below 8420 - 8370 - 8330 - 8270 SL - 8495
Buy Nifty above 4740 - 4782 - 4814 - 4835 SL - 4715
Sell Nifty below 4700 - 4680 - 4648 - 4616 SL – 4728

Stock Ideas for the Day
Wipro: Buy above 608.1 for targets of 613, 618 SL of 603
Reliance Industries: Sell below 1925 for targets of 1900, 1887 SL of 1938
Voltas Ltd: Buy above 161 for targets of 163, 165 SL 158.50

Positional Call
Northgate technologies (590057): Buy above 29.3/- (buy for the target of 50 in very short term and 75 in mid term)
Sanguine media (531898): Buy at 3.5 for target of 8, 9, 10 SL of 2.90 (6 months)
Balrampurchini: Buy above 149 for targets of 160, 170 SL of 139 (One month)
Maral Overseas Ltd (Short term target- 13)

Use strict STOP LOSS in each and every trade in this kind of volatile market and Trade at your own risk.

Thanks and Regards

S&P Wealth Creators

Call 09831497250 or mail us @ S&P Wealth Creators with your Name and Mobile No. for subscription offer of intraday calls during Market hours.

Disclaimer
The calls given here are My Personal views, trading or investing in stocks is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. S&P Wealth Creators will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information.
Investors should be cautious about any and all stock recommendations and should consider the source of any advice on stock selection. Various factors, including personal or corporate ownership, may influence or factor into an expert’s stock analysis or opinion.