Market outlook for 09/02/10

The leading Indian bourses had come under severe selling pressure in morning after reports depicted that India's economy is anticipated to grow at 7.2 per cent in FY 2009-10, higher than 6.7 per cent growth seen in 2008-09, according to government. On the other hand investors became cautious on concerns that the government may start unwinding fiscal stimulus in the forthcoming budget to reduce fiscal deficit. But key benchmark indices recovered sharply its early losses looking forward to European markets which started with gains and trading in positive territory.
Nifty closed the day at 4,760.40 up by 3.15 points. Nifty February Future closed at 4,766.90 premium of 6.50 points.

• FII sold in index futures and cash but bought in index options (Net sold 530.2 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: 4800 and 4900.
• Most Active February Nifty Put Options: 4700 and 4600.

Over all view
Supports: Crucial and real tough job to take your trading decisions. 4740/35 is the immediate support level, below that 4710 is very much possible. It's important for Nifty to hold any of these two levels to resume the up move. Below 4710 levels of 4670-4640/30 zone is possible.
Resistances: 4825 as discussed yesterday, still intact. Above that 4840 is another important hurdle. So 4825/40 can very well be the BO point for the upside. Above that 4885/95-4975 and further levels discussed possible. But remember, intermediate downtrend will be completely negated only it manages to cross and trade above 5085 level.

NIFTY Technical
Current Spot: 4760.40
Pivot: 4745
3DEMA: 4768
7DEMA: 4816
20DEMA: 4947
RSI (7 days): 30.73
Supports: 4691 - 4621
Resistance: 4815 - 4869

Target Nifty
Buy Nifty above 4768 - 4823 - 4883 - 4962 SL - 4744
Sell Nifty below 4739 - 4688 - 4609 - 4549 SL - 4749

Stock Ideas for the Day
Reliance Industries: Buy above 998 for targets of 1006, 1016, 1024 SL of 992
Reliance Industries: Sell below 991 for targets of 979, 978, 960 SL of 998
Bhushan Steel: Buy above 1537 for targets of 1568, 1602 SL of 1493 (2-3 Days)
JSW Steel: Buy above 984 for targets of 1008, 1032 SL of 966 (2-3 Days)
IBReal Estate: Buy above 174 for targets of 176, 180 SL of 170.5 (2-3 Days)

Positional Call
IFCI: Buy above 51.30 for targets of 58 SL of 47 (One Month)
Usha Martin: Buy above 79.40 for targets of 85 SL of 77 (One Week)

Wall Street people learn nothing and forget everything - Benjamin Graham

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

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