Market outlook for 02/02/10

Markets reversed from the initial losses and managed to close today's session on flat note after exhibiting volatility during the trading as investors booked profit in key stocks. Domestic indices were unable to stick on a particular direction on continuous bouts of buying and selling. However, market gained some ground during afternoon session following latest report that India's manufacturing grew at fastest in 18 months. Meanwhile, stocks were sharply lower during initial bell tracking weak Asian cues. The Asian markets were mostly in red on account of the concern fueled by the manufacturing surveys that Chinese policy makers will rein in record lending growth.
Nifty closed the day at 4,899.70 up by 17.65 points. Nifty February Future closed at 4,901 premium of 1.30 points.

• FII sold in cash but bought in index futures, stock futures and stock options. (Net buy 242.6 Crore)
• US markets closed in Green.
• Global cues are flat to Positive.
• SGX nifty is Positive as of now.
• Most Active February Nifty Call Option: 4900 and 5000.
• Most Active February Nifty Put Options: 4800 and 4700.

Over all view
4820 was given as the final breakdown level for the last session. 4822 was the place from where buying emerged and nifty continued move up right from there till the end. Though 4935 zone is not crossed, but demand at the support zone (first from 4760, then 4820) is indicating towards a very immediate term uptrend.
Supports: 4885 is critical for the day. Below that 4870, 4845 is again possible. Further breakdown can bring 4820, 4785. Below 4785 current up move is very likely to get negated.
Resistances: As the intra impulse is on, the target/resistances are relatively higher than the support levels. 4925/35 is very important. Above that another strong breakout is possible for 4975/80-5015/20 zone.

NIFTY Technical
Current Spot: 4899.70
Pivot: 4881.90
3DEMA: 4898
7DEMA: 4957
20DEMA: 5068
RSI (7 days): 23.83
Supports: 4845 - 4790
Resistance: 4937 - 4973

Target Nifty
Buy Nifty above 4903 - 4939 - 4981 - 5041 SL - 4879
Sell Nifty below 4875 - 4842 - 4783 - 4740 SL - 4884

Stock Ideas for the Day
Reliance Industries: Buy above 1046 for targets of 1054, 1061, 1072 SL of 1035
Reliance Industries: Sell below 1035 for targets of 1031, 1024, 1005 SL of 1046
Tata Steel: Buy above 580 for targets of 509, 606 SL of 569 (2-3 Days)
Moser Baer: Buy above 81.1 for targets of 82.7, 84.6 SL of 80.3
Shree Renuka Sugar: Buy above 209 for targets of 212, 217 SL of 207

Positional Call
India Nippon Electricals: Buy above 230 for targets of 266 SL of 218 (One Month)
RNRL: Buy above 65 for targets of 71 SL of 62 (One Week)

Rule No.1: Never lose money. Rule No.2: Never forget rule No.1 - Warren Buffett

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.