Market outlook for 06/02/10

Domestic market extended losses to more than 2.5 per cent to conclude the session on deep red zone on huge selling pressure over the ground. Market touched three months low level, as losses in European markets including Spain and Portugal weighed on sentiments. Bears tightened the grip on indications of weak US jobs data. Further, crash in commodity and energy prices hoisted fresh worry over the global economic recovery. Meanwhile, US index futures reversed their initial gains and turned negative, consequently took huge beating on the domestic bourses. On the other hand the cues from the major European market were not impressive, which fueled the negative sentiments of investors. Nifty closed the day at 4,718.65 down by 126.70 points. Nifty February Future closed at 4,703.60 discount of 15.05 points.

• FII sold big in index futures and cash but bought small in stock futures and index option (Net sold 2831.5 Crore)
• US markets closed Flat.
• Most Active February Nifty Call Option: 4800 and 4900.
• Most Active February Nifty Put Options: 4700 and 4600.

Over all view
Markets globally melted down and so did we...levels have no relevance for a day or so, as this is a panic dip, do collect some of your select stocks for a bounce back in few days. Be a trader, enjoy the day & weekend cheers.

NIFTY Technical
Current Spot: 4718.65
Pivot: 4724
3DEMA: 4795
7DEMA: 4860
20DEMA: 4988
RSI (7 days): 23.54
Supports: 4687 - 4656
Resistance: 4755 - 4792

Target Nifty
Buy Nifty above 4720 - 4744 - 4782 - 4812 SL - 4714
Sell Nifty below 4701 - 4681 - 4651 - 4613 SL - 4719

Option & Futures Call
GMR Infra: Buy 55 CE at 1.75 (Feb Expiry) for Targets of 3, 5 SL 1

Stock Ideas for the Day
Reliance Industries: Buy above 989 for targets of 1000, 1019, 1032 SL of 987
Reliance Industries: Sell below 979 for targets of 969, 956, 937 SL of 988
IFCI: Buy above 50.1 for targets of 51.2, 52.6 SL of 49.1 (2-3 Days)

Positional Call
GMR Infra: Buy above 52.5 for targets of 56 SL of 49.1 (One Week)

We're getting hurt, but I'm a long-term investor - Prince Alwaleed

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.