Market outlook for 04/02/10

Domestic market extended its' initial gains till end to close the day with strong gains backed by intense buying in front liners. Strong buying over the ground was contributed by the positive Asian markets. Strong US economic data also added to the positive sentiments. The pending home sales index in US rose 1 per cent in December after plunging 16.4 per cent in November, according to the National Association of Realtors. In addition, in domestic arena strong response to the FPO of NTPC and robust services sector data for January 2010 also contributed to the rally.
Nifty closed the day at 4,931.85 up by 101.75 points. Nifty February Future closed at 4,922 discount of 9.85 points.

• FII bought in cash, index futures, and stock futures. (Net buy 3350.9 Crore)
• US markets closed in Red.
• Global cues are flat to Negative.
• SGX nifty is Negative 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: 4890/4900 is most critical zone to hold for nifty for any further up move. A convincing break below 4880 can terminate the immediate bullishness again for downward targets of 4855-4810-4785.
Resistances: As 4839 has been breached, it can have some bullish significance. But a confirmed breakout above 4955 can certainly bring 4985/90-5025/30-5085/95.

NIFTY Technical
Current Spot: 4931.85
Pivot: 4914.55
3DEMA: 4898
7DEMA: 4927
20DEMA: 5034
RSI (7 days): 40.7
Supports: 4881 - 4830
Resistance: 4965 - 4999

Target Nifty
Buy Nifty above 4929 - 4967 - 5010 - 5072 SL - 4904
Sell Nifty below 4899 - 4866 - 4804 - 4761 SL – 4909

Option & Futures Call
Buy Gmr Infrastructure Ltd 65 CA (Call Option) Feb Expiry @ 1.10 Target 2, 3, 4

Stock Ideas for the Day
Reliance Industries: Buy above 1043 for targets of 1048, 1053, 1059 SL of 1035
Reliance Industries: Sell below 1029 for targets of 1026, 1021, 1013 SL of 1040
Gujarat NRE Coke: Buy above 76.6 for targets of 78, 81 SL of 74.2 (2-3 Days)
ABG Shipyard: Buy above 336 for targets of 344, 351 SL of 322

Positional Call
JSW Energy: Buy above 110 for targets of 133 SL of 104 (One Month)
Uttam Galva Steel: Buy above 125 for targets of 136 SL of 121 (One Week)

Diversify your investments - John Templeton

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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S&P Wealth Creators

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