Market outlook for 03/02/10

Domestic market renounced all its initial gains to conclude its today's journey on negative note after a high volatile session. Meanwhile, the benchmark indices were on upbeat mood during early trade on firm cues from global markets. The U.S. market ended higher on Monday. Besides, Asian stocks were also trading on firm note during early trading. However, market pared gains after opening, as Asian shares erased some of their early gains. The fall was also led by financials and realty stocks due to fresh selling emerged at higher level. Fluctuation in European stocks also added to instability.
Nifty closed the day at 4,830.10 down by 69.60 points. Nifty February Future closed at 4,818 discount of 12.10 points.

• FII sold in cash, index futures, and index options but bought in stock futures. (Net sell 851.7 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 4900.

Over all view
Supports: Immediate and probably the main support for the last up move lies at 4795, A confirmed break below that can certainly bring 4760-4730 again, with a target of 4640 & 4400 positionally.
Resistances: Main resistance which can bring a potential intermediate reversal is lying at 4940, above that it can certainly hit 4980/90-5040-5080/90. Intra day hurdles are placed at 4870-4895.

NIFTY Technical
Current Spot: 4830.10
Pivot: 4865.10
3DEMA: 4864
7DEMA: 4926
20DEMA: 5045
RSI (7 days): 18.6
Supports: 4779 - 4728
Resistance: 4916 - 5002

Target Nifty
Buy Nifty above 4860 - 4903 - 4986 - 5035 SL - 4854
Sell Nifty below 4815 - 4775 - 4726 - 4643 SL - 4859

Stock Ideas for the Day
Reliance Industries: Buy above 1037 for targets of 1048, 1056, 1070 SL of 1035
Reliance Industries: Sell below 1025 for targets of 1014, 1007, 1002 SL of 1036
Thinksoft: Buy above 479 for targets of 483, 490 SL of 473 (2-3 Days)
Bharati Shipyard: Buy above 332 for targets of 337, 345 SL of 329
Sterlite Ind: Buy above 735 for targets of 748, 761 SL of 710

Positional Call
Inox Leisure: Buy above 77 for targets of 87 SL of 74 (One Month)
Visa Steel: Buy above 42.75 for targets of 46 SL of 40 (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.

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